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Ark Invest and 21Shares Apply for First Spot Ethereum ETF in the United States
In collaboration with 21Shares, Ark Invest, led by Cathie Wood, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for an ether-based ETF, named the ARK 21Shares Ethereum ETF. This ETF aims to provide investors direct exposure to Ethereum, with its price based on the CME CF Ether-Dollar Reference Rate – New York Variant, and it will trade on the Cboe BZX Exchange.
The trust has designated 21Shares as its sponsor, Delaware Trust Company as the trustee, and Coinbase Custody Trust Company as the custodian, while Ark Investment Management will assist in marketing. Notably, this ETF will avoid investing in derivatives. The SEC, however, hasn't approved any spot crypto fund yet, consistently delaying decisions on these filings. Ark Invest's Brett Winton recently emphasized the importance of the U.S. embracing crypto for its long-term strategic interests.
Google Loosens Ad Guidelines for NFT Game Providers
Google has revised its policies on cryptocurrency-related advertisements, specifically broadening the scope for non-fungible token (NFT) games. Starting from September 15, NFT game advertisements that don't encourage gambling will be permitted, given they have Google's certification. To qualify, the games cannot involve staking or wagering of NFTs for potential wins of other assets, and they cannot endorse simulated casino activities or real money gambling destinations.
Google highlighted that compliant blockchain-based NFT games, where players can buy in-game items, are acceptable. Advertisers also need to align with Google’s recently updated gambling policy, which mandates not targeting users below 21 and includes a compulsory warning about gambling addiction risks. In case of policy violations, Google will issue a warning before taking action against an account. Reflecting a growing interest in Web3, Google established a dedicated division for blockchain in 2022 and launched a Web3 startup program in April 2023.
Hong Kong Advances to Second Phase of Testing for China's Digital Yuan
Hong Kong has advanced to the second phase of technical testing for China's central bank digital currency, the digital yuan (e-CNY). The Hong Kong Monetary Authority and the People's Bank of China have successfully conducted initial tests for cross-border payments using the e-CNY.
The current trial phase incorporates a broader spectrum of Hong Kong banks and examines the integration with the Faster Payment System, a platform introduced by HKMA in 2018 for cross-bank transfers using the recipient's phone number or email. Notably, this system reported a substantial year-on-year increase in HKD payments for Q2. The digital yuan aims to optimize cross-border retail transactions between the two regions, enhancing connectivity in the Greater Bay Area of Guangdong, Hong Kong, and Macau. Eric Jing, CEO of Ant Group, emphasized the digital yuan's potential in industrial internet, underscoring its programmability feature, which facilitates cross-chain interactions and automation.
Trading Desk Insights
The S&P 500 and Nasdaq witnessed a decline for the fourth consecutive day on Thursday, driven by Wall Street's renewed focus on the Federal Reserve's stance on interest rates and the anticipation of further hikes within the year.
Apple stocks experienced a 3.3% decrease following a Bloomberg News article suggesting that China may expand its restrictions on iPhone usage within its state-owned enterprises and agencies. Notably, technology and semiconductor equities trailed behind, with notable drops in Tesla, Nvidia, and Advanced Micro Devices, each descending approximately 3%.
As we continue to trade sideways, BTCUSDT keeps building volume at these lows. The positioning of market participants continue to show less interest as evidenced by the declining BTC open interest on most exchanges. Interestingly enough, the open interest and volume of BTC and ETH derivatives on the CME has continued to rise MoM, showing how the ETF narrative has brought in more traditional institutional players.
In other news, investors are getting ready for a few token unlocks including Aptos on September 11th worth $25 million as well as ApeCoin on September 16th worth $54.4 million. Also, Ex-FTX executive Salame is expected to plead guilty to criminal charges today over the collapse of the cryptocurrency exchange. Finally, Cboe's BZX exchange is hoping to launch the first spot ETH ETF in the U.S., filing the paperwork for products tied to Ark 21Shares and VanEck.
Technical Charts
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