Exchange-traded frenzy

The SEC’s January approval of spot bitcoin ETFs was a big hurdle cleared, as US crypto fund plans have only ramped up from there. 

You probably know about the imminent launches of US spot ETH funds. A source told Blockworks that issuers could hear from the SEC “at any point” about a listing date for those given the “light” last round of registration amendment revisions.

Industry watchers now wonder whether the agency will let those S-1s go effective prior to July 4, or if it will take a bit more time.

But in some ways that seems like old news, as US spot solana ETF plans have stolen some headlines.

VanEck — a firm already with a spot bitcoin ETF (and a planned ETH product) — led the charge on that front via a Thursday filing in the US. The proposal differs from a planned SOL fund submitted by 3iQ in Canada last week and could be tough to get past regulators at this point.  

Still, 21Shares joined the paperwork party by filing for a US solana ETF of its own on Friday. The company has a Solana Staking ETP trading in Europe with $850 million in assets. 

“While including a crypto token in a CME futures contract has legal precedent, it should not be the sole criterion for ETF eligibility,” 21Shares legal head Andrew Jacobson said in a statement.

It’s probably worth mentioning too that ETF powerhouse State Street Global Advisors said Wednesday it was partnering with Galaxy Digital to launch “the next generation of digital asset-based strategies.”

The firms together filed for three funds, including a Digital Asset Ecosystem ETF that would invest in crypto equities and futures contracts, as well as in ETFs that hold spot crypto or futures. 

SSGA’s entrance is certainly something to watch, particularly if they end up choosing to launch spot crypto products. The company has plenty of brand recognition and its physically backed gold ETF (GLD) is the largest of its kind, with roughly $62 billion in assets. 

Even before the SOL and SSGA fund filings, Hashdex revealed plans (on June 18) for a fund that would hold both BTC and ETH. 

Not to mention the SEC is still considering a planned spot bitcoin ETF that combines BTC exposure with carbon credit futures. Oh, and a separate fund proposed Wednesday would invest in futures and ETFs related to both bitcoin and gold.

Bottom line, the crypto-related ETF stack on the SEC’s desk is sizable — and likely to get bigger. 

US spot ETH and SOL ETFs may have seemed like an utter fantasy in early 2023. But BlackRock would enter the spot bitcoin fund race mid-year. Grayscale then won a lawsuit, the SEC cleared ether futures ETFs and, last month, approved the 19b-4s for spot ETH ETFs.  

To some, the SEC giving its blessing to a SOL ETF might feel like a pipe dream, and maybe it is (at least in the near-term). But it’s hard to deny we appear to be in a new era of crypto ETF innovation. 

If the SEC filings webpage isn’t among your bookmarked tabs, you might want to add it.

Link

The Securities and Exchange Commission filed a suit against Consensys Software on Friday.

The SEC is alleging that the company failed to register as a broker as well as offering and selling unregistered securities.

Specifically, the SEC targeted MetaMask Swaps. The regulator alleges that Consensys “holds itself out as a place to buy and sell crypto assets (which include crypto asset securities), recommends trades with — as Consensys itself puts it — the ‘best’ value, accepts investor orders, routes investor orders, handles customers assets, carries out trading parameters and instructions on the customer’s behalf, and receives transaction-based compensation.”

“By its conduct as an unregistered broker, Consensys has collected over $250 million in fees,” the suit claims.

The SEC says that two of the securities offered by Consensys — Lido and Rocket Pool — are unregistered securities.

“Consensys’s unregistered offer and sale of the Lido and Rocket Pool securities, as to which it also acts as an unregistered broker, violates the federal securities laws…Indeed, registration statements provide investors with material information about the securities offering and the issuer’s business and financial condition, so that investors can make informed investment decisions,” the SEC claimed.

The claims by the SEC Friday line up with what Consensys has previously said that the SEC alleged in its Wells notice. According to a lawsuit filed by Consensys against the SEC earlier this year, the SEC targeted MetaMask Swaps in an investigation, warning Consensys that it may pursue legal action.

Last summer, the SEC filed suits against both Coinbase and Binance. The regulator alleged that the two also offered and sold unregistered securities.

Consensys didn’t immediately return a request for comment on the suit.

The Securities and Exchange Commission filed a suit against Consensys Software on Friday.

The SEC is alleging that the company failed to register as a broker as well as offering and selling unregistered securities.

Specifically, the SEC targeted MetaMask Swaps. The regulator alleges that Consensys “holds itself out as a place to buy and sell crypto assets (which include crypto asset securities), recommends trades with — as Consensys itself puts it — the ‘best’ value, accepts investor orders, routes investor orders, handles customers assets, carries out trading parameters and instructions on the customer’s behalf, and receives transaction-based compensation.”

“By its conduct as an unregistered broker, Consensys has collected over $250 million in fees,” the suit claims.

The SEC says that two of the securities offered by Consensys — Lido and Rocket Pool — are unregistered securities.

“Consensys’s unregistered offer and sale of the Lido and Rocket Pool securities, as to which it also acts as an unregistered broker, violates the federal securities laws…Indeed, registration statements provide investors with material information about the securities offering and the issuer’s business and financial condition, so that investors can make informed investment decisions,” the SEC claimed.

The claims by the SEC Friday line up with what Consensys has previously said that the SEC alleged in its Wells notice. According to a lawsuit filed by Consensys against the SEC earlier this year, the SEC targeted MetaMask Swaps in an investigation, warning Consensys that it may pursue legal action.

Last summer, the SEC filed suits against both Coinbase and Binance. The regulator alleged that the two also offered and sold unregistered securities.

Consensys didn’t immediately return a request for comment on the suit.

Link

Web 3.0 infrastructure provider SubQuery Network has announced the launch of two new RPCs for the Polkadot ecosystem. Available for Polkadot and Kusama, they are the first decentralized RPCs to be made available on the Substrate-based networks.

SubQuery provides Web 3.0 infrastructure for almost 200 networks. The SubQuery Network is a globally distributed network of decentralized indexers and RPC providers.

These allow DApps (decentralized apps) to access fast and reliable blockchain data on-demand without introducing centralized points of control.

Teams building on Polkadot and Kusama can now utilize SubQuery’s decentralized RPC (remote procedure call) nodes following their deployment.

James Bayly, COO of SubQuery, said,

“We are thrilled to be the first to provide decentralized RPCs for Polkadot on the SubQuery Network.

 

“Our node operators are already running RPCs and other nodes in multiple ecosystems – and having emerged from the Polkadot ecosystem, we’re ideally placed to support Polkadot developers with their infrastructure.”

The Polkadot RPCs that have been deployed for the Polkadot relay chain and Kusama are operated by more than 30 independent node operators.

The provision of decentralized RPCs is integral to enabling blockchain projects to operate efficiently and draw data from multiple sources.

RPCs are pivotal for communication between blockchain nodes and external entities, facilitating data retrieval, smart contract interactions and transaction submissions.

The availability of decentralized RPCs frees DApps from reliance on centralized middleware with the risks this entails.

SubQuery Network’s decentralized RPCs facilitate secure and efficient Web 3.0 communication.

This capability underpins the robust and transparent operations that are essential for the success of DePINs.

SubQuery started out within the Polkadot ecosystem, releasing an indexer capable of connecting to its unique multi-chain architecture.

It’s since expanded to incorporate hundreds of networks, making it a leading indexer of Web 3.0 data based on chain support.

About SubQuery

SubQuery has pioneered fast, flexible and scalable infrastructure to power Web 3.0.

SubQuery Network provides indexed data to the global community in an incentivized and verifiable way.

Its infrastructure plays a critical part in helping Web 3.0 transition to an open, efficient and user-centric future.

Learn more at the links below.

Website | X

Link