ETH options coming soon-ish. The SEC is now seeking public input on a proposal to permit options trading for three spot Ethereum ETFs: the Grayscale Ethereum Trust ETF, Grayscale Ethereum Mini Trust ETF, and Bitwise Ethereum ETF. Given that Bitcoin ETF options were approved about nine months after the underlying spot ETFs, a similar timeline for Ethereum would place a decision around late 2025, with trading beginning shortly thereafter. Give us that FTX flow! Remember that crypto exchange that collapsed a couple of years ago? Well, it turns out everyone is getting their money back. FTX disbursements kicked off yesterday, with the initial phase focusing on claims up to $50,000, while larger creditors are expected to receive funds starting in May. When governments dump seized assets in the open market or creditors sell recovered coins to recoup losses, it's often short-term bearish, but this is not the case here. If anything, it's neutral at worst. The idea that FTX repayments will create significant selling pressure in crypto markets is largely misleading. The repayments, totaling approximately $12.7 billion, are being made in dollars, not crypto. This means there won't be a sudden influx of Bitcoin, Ethereum, or other coins hitting the market. Instead, creditors are receiving cash equivalent to the value of their holdings as of November 2022, when FTX collapsed. Many creditors have been locked out of their funds for over two years, and receiving cash settlements gives them fresh liquidity which could flow back into the market, especially if sentiment remains positive. Finally we can move past the FTX saga and its overhang on the industry. SOL ETF??? While we're in regulatory approval land, the SEC is currently reviewing applications for Solana ETFs, with a potential decision timeline extending up to 240 days, starting with a 21-day review period. This puts a decision timeline somewhere between March 23 and October 4, 2025. Previously the SEC has used the full 240 day period before announcing a decision on crypto ETFs, so it's prudent to anticipate a decision more likely towards the end of this year. But who knows, Solana is the chain of presidents after all. |