Key Takeaways

Bitcoin and ether experienced a downward trend on Tuesday following significant price jumps last week. Bitcoin briefly slipped below $68,000 after trading above $70,000, while ether surged roughly 25% in 24 hours amid optimism surrounding the approval of spot ether exchange-traded funds (ETFs). However, the surge was short-lived despite the regulatory green light for the product.

The U.S. Securities and Exchange Commission (SEC) unexpectedly paved the way for the listing of spot ether ETFs on U.S. exchanges, setting the stage for potential listings by companies like BlackRock, Grayscale, and Fidelity. However, approval for these ETFs may still be months away, with S-1 registration filings expected to take until July or August.

In other news, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which proposes a clear division of regulatory responsibilities for digital assets between the Commodity Futures Trading Commission (CFTC) and the SEC. The bill faces a challenging path in the Senate, with President Joe Biden opposing it due to concerns about consumer and investor protections.

Former President Donald Trump made headlines by doubling down on his endorsement of crypto, pledging to commute the sentence of Ross Ulbricht, the convicted founder of the darknet marketplace Silk Road. Trump’s move is seen as an attempt to appeal to Libertarian voters and position himself as the pro-crypto candidate ahead of the upcoming election.

Additionally, a U.K. High Court judge ruled that computer scientist Craig Wright lied extensively and committed forgery in his attempt to prove he is Satoshi Nakamoto, the creator of Bitcoin. Despite Wright’s intention to appeal, his credibility has been significantly damaged.

As regulators and market watchers keep a close eye on the fate of the FIT21 bill in the Senate, other developments in the crypto space include the sentencing of a former FTX executive and a potential acquisition deal between bitcoin infrastructure company Riot Platforms and bitcoin mining firm Bitfarms. The deal, if successful, could result in the creation of the world’s largest publicly listed bitcoin miner.