News Roundup — Ethereum ETFs Did $1 Billion in Volume in First Day of Trading

Major news stories this week;

1. Ethereum ETFs Did $1 Billion in Volume in First Day of Trading‍
2. EU releases crypto-asset classification tools to help firms comply with MiCA‍
3. Coinbase files motion to compel SEC to release documents related to Gensler‍
4. Kraken Completes Mt Gox Bitcoin and Bitcoin Cash Distribution to Creditors‍
5. Stablecoin pegged to Hong Kong dollar unveiled

Story Summaries;

1. Ethereum spot exchange traded funds (ETFs) did $1 billion of trading volume at launch, compared with Bitcoin spot ETFs’ opening day volume at $4.6 billion, which was at the high end of analyst predictions.Grayscale’s Ethereum Trust ETF (ETHE) did the most volume, followed by BlackRock’s iShares Ethereum Trust ETF (ETHA), and Fidelity’s Ethereum Trust (FETH). Ethereum ETF volumes are about 22% of what Bitcoin spot ETFs did on their first day, which was in line with optimistic predictions based on ETF volumes in other jurisdictions. The ETH ETFs launch is the second-most successful out of any ETFs’ first day of trading after Bitcoin. Eric Balchunas, a senior ETF Analyst at Bloomberg said in an X post, “for some more context on these numbers: BlackRock launched a Manufacturing theme ETF $MADE last week. It did $300k in volume on Day One. $ETHA will have done 100x that amount in its first 30 minutes on (the) market.”
2. Regulators in the European Union have issued new guidelines allowing relevant market participants to classify cryptocurrencies and digital assets under the Markets in Crypto-Assets (MiCA) Regulation. On July 12, three European Supervisory Authorities — the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority — released a consultation paper intended to standardize and clarify the classification of digital assets across the region. The newly released guidelines provide a structured approach to classifying various types of crypto assets. This includes determining whether a token falls under MiCA through question-based prompts, such as who the issuer is, whether it is based on the blockchain, or whether it is a type of financial instrument. It also helps determine whether the token in question qualifies as a standard crypto asset under MiCA or if it could be classified as another type of asset, such as an electronic money token (EMT) or an asset-referenced token (ART).
3. In a new court filing, Coinbase lawyers are seeking access to documents and communications from Gensler’s tenure as the SEC Chair. The July 23 motion asks for Gensler’s private communications during his time as SEC Chair from 2021 onward. Coinbase’s defence had previously requested Gensler’s emails from before and during his time as SEC Chair. However, after pushback from the SEC and Judge Katherine Polk Failla, Coinbase narrowed its request. The motion highlights Subpoena Request No. 23, which includes documents related to Gensler’s speeches on digital asset regulation. According to Coinbase’s chief legal officer, Paul Grewal, these documents “bear directly on the claims the SEC now asserts.” The motion adds that the SEC has refused to search for documents outside its Enforcement Division’s investigative files, citing relevance and undue burden. It also refused to conduct custodian email searches and establish a produce-or-log protocol for any such searches.
4. Cryptocurrency exchange Kraken has completed distributing bitcoin (BTC) and bitcoin cash (BCH) from the Mt. Gox estate to creditors, CEO David Ripley announced on social media platform X on Wednesday. Last week, Kraken received 48,641 BTC, valued at over $3 billion, from the Mt. Gox Rehabilitation Trustee to distribute to creditors. “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty,” he added. Ripley mentioned that previous attempts at repayment were hindered by frivolous lawsuits but expressed gratitude to the Trustee for safeguarding the coins. “While frivolous lawsuits got in the way of earlier payments, we are extremely grateful to the Trustee for keeping the coins safe and HODLing the vast majority of BTC all this time. The preservation of value is exemplary and is surely appreciated by all creditors,” he stated.
5. Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, has announced that it plans to issue a 1:1 stablecoin linked to the Hong Kong dollar (HKD). According to an announcement on the official website, the Hong Kong Monetary Authority (HKMA) currently lists the firm as one of The Sandbox Participants. Although the company is included as a Sandbox Participant by the HKMA, a disclaimer states that it cannot be considered as being “endorsed or granted or deemed to be licensed to issue stablecoin.” Jingdong Coinlink plans to issue the stablecoin on the blockchain with a peg to the HKD, aiming to provide businesses with “efficient, cost-effective, and secure payment solutions.” According to the website, the stablecoin will be redeemable on a 1:1 basis, and its reserves will consist of “highly liquid, highly trusted assets” stored in licensed financial institutions. The website also states that the stablecoin will “actively” collaborate with “global regulatory authorities” while adhering to existing and future legal and regulatory requirements.

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And that’s all for last week’s news! Wishing you a great week ahead!

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