Uncertainty Surrounds May Approval of ETH Spot ETF

Our latest market digest highlights the ongoing effects of Binance's Launchpool activities on BNB prices. We also take an in-depth look at BounceBit, with its unique approach to BTC re-staking. The discussion also covers the anticipated decision on an ETH spot ETF approval.

Uncertainty Surrounds May Approval of ETH Spot ETF

Binance non-stop Launchpool boosts BNB

In this week, right after $AEVO, Binance started $ETHFI launchpool. This has pumped BNB straight up to over $600. Let's do a quick maths here, from my experience so far, on average 1 BNB from 1 launchpad will earn free token worth $5-10. If there's 2 launchpools each month, the free income is monthly $10-20 USD, and annually $120-240.It'll not continue forever, but this clearly add into the price expectation of BNB, besides more users will burn more BNB in trading fees.

Would you say 1 BNB = 0.01 BTC?

BounceBit - restaking on BTC

There's a huge wave of marketing campaign on Twitter about BounceBit

According to its own Medium announcement, BounceBit is building a BTC restaking infrastructure that provides a foundational layer for different restaking products, secured by the regulated custody of Mainnet Digital and Ceffu. The BounceBit chain, designed as a showcase of a restaking product within the BounceBit ecosystem, is a PoS Layer 1 secured by validators staking both BTC and BounceBit’s native token — A dual-token system leveraging native Bitcoin’s security with full EVM compatibility. Critical ecosystem infrastructure like bridges and oracles are secured by restaked BTC. Through an innovative CeFi + DeFi framework, BounceBit empowers BTC holders to earn yield across multiple networks.Well, I guess people care more about how much airdrop they can get 🪂.

Will ETH spot ETF come this May ?

According to FoxBusiness @EleanorTerrett, there's a one-side rally from industry participants to push for ETH spot ETF, but SEC is not really engaged. The current market somehow reflects this concern, where ETH/BTC is wandering between 0.05-0.06, where the peak in the last bull run was 0.08.

The editor offers their perspective (strictly personal and not representing 1Token, nor intended as financial advice): The belief is that an ETH spot ETF will not receive approval this May. The reasoning, which is outlined below, is based on several key factors...

  • ETH with its POS model, is closer to securities than BTC with its POW model
  • The last SEC vote for BTC spot ETF was 3-2, so any one of the 3 voters thinks differently about ETH will make it not approved
  • If ETH spot ETF door gets opened this May, SEC will face significant pressure to review the 3rd, 4th spot ETF, so halting ETH essentially saves further discussions

On the other side of the world, Hong Kong with its crypto-friendly strategy, is expected to launch BTC spot ETF very soon. It's usually expected that Hong Kong SFC just follows US SEC passively, but not sure if Hong Kong wants to take an early move on the ETH spot ETF this time.

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