Ether now allows investment like bitcoin, Euroclear does not welcome buybacks, insurance is getting more expensive due to drones

Ether is becoming the second cryptocurrency after Bitcoin in which investors do not have to deal with crypto exchanges to invest

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The US Securities and Exchange Commission (SEC) yesterday approved the creation of spot ETFs for investments in the world's second cryptocurrency, ether.

• This does not mean an immediate launch of such ETFs - investment companies will have to obtain separate permits. It is unclear when they will be issued: estimates vary from three weeks to a couple of months. Nevertheless, this is very favorable news for ether. Rumors that the SEC will still allow an ETF on ether began at the beginning of the week, when the regulator asked funds to update applications, and the token's quotes immediately jumped by a quarter - to $3,800 per unit.
• The point of cryptocurrency ETFs for investors is that they turn cryptocurrency into a standard asset. Without them, crypto can be traded directly or through a crypto exchange, but with high transaction costs or commissions, not to mention the hassle of protecting wallets. Less than six months after the SEC's historic decision to approve Bitcoin ETFs, the funds have already raised $58 billion in investor funds.
• The current capitalization of ether ($440 billion) is about three times lower than that of bitcoin, but it is obvious that investors will be interested, and the first ETF on the market will immediately take the lead. Investment funds such as BlackRock, ARK Investment, Fidelity and VanEck are lining up for SEC approval.
• There is another piece of good news in the SEC decision, writes Bloomberg. It is that the SEC apparently no longer considers this cryptocurrency a security, but a commodity. The difference in regulation here is fundamental, and it was this that “knocked down” Pavel Durov’s cryptocurrency project at the time.
• According to The Wall Street Journal, the regulator's head, Gary Gensler, has backed away from his hard-line stance on ether and opened the door to funds that are add-ons to smaller, riskier cryptocurrencies. This has been compounded by political bargaining: cryptocurrencies are favored by US Republicans. Just this week, the House of Representatives passed a bill weakening the SEC's position in favor of the Commodity Futures Trading Commission (CFTC), which has long recognized ether as a commodity.

What do I get out of this?

The Bell has written more than once about how the launch of spot ETFs on Bitcoin will affect the crypto market and other things ( 1 , 2 ), the conclusions are also applicable to ETFs on Ether. Bitcoin has not become the “new gold”, but it is quite a normal and useful asset with analyzable features (primarily inherent volatility).

In the medium term, the SEC decision increases the risks of cryptocurrencies becoming integrated into the traditional financial system, some analysts believe . This is dangerous because it could reduce overall predictability and lead to a repeat of the 2007–2008 financial crisis, only in a worse scenario.

MONEY

Euroclear does not welcome the redemption of frozen

Euroclear has commented for the first time on Russia's efforts to exchange frozen assets of individuals, but this will not add optimism to potential participants. "We are not participating in this process, and if you decide to take part in such a procedure, you do so entirely at your own risk," Vedomosti quotes the depository's letter. Naturally, it insists on compliance with all sanctions restrictions.

The Bell wrote about the procedure for exchanging foreign securities blocked in foreign depositories by Russian retail investors here . Most of them decided to submit applications, now it's up to buyers from the other side: this is almost the only mass opportunity to get funds from special accounts of type C. The collection of their applications will begin in June.

Insurance prices are rising due to drones

Some Russian insurers (RESO-Garantiya) have expanded coverage for the risk of terrorism in accident policies. Now they include "the use of any military equipment, weapons, ammunition and explosive devices," including drones and missiles. Accordingly, insurance is becoming more expensive: in regions bordering Ukraine, by one and a half times. In order to receive payments outside the "terrorist" section of Article 205 of the Criminal Code, policyholders will have to run around for certificates - there is no proven mechanism, market participants warn.

SpaceX values ​​itself $20 billion higher

Elon Musk's SpaceX is preparing to sell shares to investors based on a $200 billion valuation for the entire company, Bloomberg has learned . This means that private SpaceX sees itself in the top 50 of the S&P 500 index, surrounded by such "whales" as Cisco or McDonald's. The last tender six months ago was held at a valuation of $180 billion.

What else is going on?

• The US State Department has restricted visas to Georgian citizens responsible for the adoption of the law on foreign agents and their family members. In addition, the Foreign Ministry has launched a reassessment of the entire range of interstate relations with Georgia. The ruling parties expect the presidential veto to be overridden on May 28, Tbilisi is preparing for new mass protests: the country celebrates Independence Day on May 26. We explained why the Georgian law on foreign agents is important for Russia here .