Grayscale is lobbying for SEC approval of ETH staking in ETPs, potentially unlocking $61 million in rewards. Significant ETH inflows into Binance raised concerns of selling pressure. Ethereum co-founder Vitalik Buterin announced advancements in scalability, aiming to transition to a zkVM framework, promising greater efficiency.
Grayscale is making headlines as it urges the U.S. Securities and Exchange Commission (SEC) to permit staking for its Ethereum exchange-traded products (ETPs). They met with the SEC’s Crypto Task Force on April 21, advocating for revisions to their Form 19b-4 filings concerning the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH). If their proposals are approved, it could unlock substantial rewards previously missed for US investors.
One of Grayscale’s legal officers, Craig Salm, highlighted that current regulations don’t fully reflect the underlying value of spot ETH ETPs due to their inability to engage in staking. He pointed out that since the launch, these US ETPs have lost out on an estimated $61 million in staking rewards, putting them at a disadvantage compared to international options. Essentially, allowing staking could enhance returns not just for shareholders but also bolster the Ethereum network’s overall security and efficiency.
Markets are keeping a watchful eye as significant inflows of ETH into exchanges—particularly Binance—could signal bigger issues. Analyst Amr Taha noted that over 92,000 ETH, approximately worth $165 million, flowed into Binance on April 24. Historically, similar patterns often precede price drops, as larger holders, or whales, look to cash in. This influx came right after a staggering $500 million Bitcoin transfer to exchanges, suggesting coordinated moves to mitigate risk.
The scalability of Ethereum remains a hot topic, with Charles Hoskinson, founder of Cardano, expressing concerns that reliance on external scaling via Layer-2 solutions may jeopardise ETH’s future. However, Vitalik Buterin, Ethereum’s co-founder, pushed back, discussing advancements towards Layer-Zero scalability. He revealed plans to potentially replace the existing Ethereum Virtual Machine with a new zkVM built on RISC-V standards, promising significant improvements in processing efficiency and throughput.
Turning to ETH’s market performance, currently trading around $1,796, the 24-hour volatility registers at 0.1% and the RSI stands at 54.89. This positioning suggests a slight bullish momentum. The widening Bollinger Bands indicate potential volatility swings, and if ETH prices can hold above the 20-day moving average, there’s a chance it could test resistance levels near $1,850. A successful close above $1,920 may even pave the way for hitting the $2,050 mark in the medium term.
As always, it’s important to note that this is not financial advice. The crypto landscape changes rapidly, and it’s crucial for investors to do their due diligence. Verify any information and consult with an expert if needed before making investment decisions.
