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GM. This is Milk Road, the crypto newsletter so bright, sunflowers turn our way.
Here’s what we got for you today:
- ✍️ ETH ETFs set to go live on July 23rd
- ✍️ Trump picks a pro-crypto VP
- 🎙️ The Milk Road Show: 6 Major Crypto Market Catalysts Every Investor Must Plan For in 2024
- 🍪 FTX and the CFTC have agreed on a $12.7B settlement
Prices as of 9:30AM ET. Click here for our Fear & Greed Index
$ETH ETFs SET TO GO LIVE JULY 23RD 🚀
Strap in, Roadies. Exchange-Traded Funds (ETFs) are like the main act at the TradFi theater, and guess what?
Ethereum ETFs are finally about to hit center stage!
Yep, you read that right.
After weeks of radio silence and some doubts, these ETFs are getting the green light. 🟢
But hold your horses, there’s still some red tape to cut through…
Step 1: S-1 filings (those pesky registration forms) need to be in by Wednesday, July 17th at 5:30 pm EST.
Step 2: Issuers must request “effectiveness” (essentially activation) by Monday, the 22nd.
This step is key to ensure all the juicy details are out there for the public to chew on so they understand the offering.
If the SEC doesn’t hit us with any last-minute curveballs, trading kicks off on July 23rd.
Tick-tock, folks! ⏱️
As we all sit and wait for the remaining S-1s to be filed, one thing is on everyone's mind: Fees.
Why? Because the higher the fees, the more it costs customers to invest in these ETFs.
Lower fees typically attract more investors, and more investors means more $ETH getting scooped up off exchanges.
So far, three S-1s have been filed with fees specified within:
- 21Shares (CETH): 0.21%
- VanEck (ETHV): 0%
- FranklinTempleton (EZET): 0.19%
And we’re currently still waiting for filings from:
- Blackrock (ETHA)
- Fidelity (FETH)
- Bitwise (ETHW)
- Invesco (QETH)
- Grayscale (ETHE)
Quick nugget: VanEck is making waves with zero fees on their $ETH ETFs. But heads up, they'll likely roll out a fee down the road.
From what we've seen so far, some fees are in line with the $BTC ETF fee rates but are low compared to major asset class ETFs such as:
- High Yield ETF (HYG 0.49%)
- Gold ETF (GLD 0.40%)
- Silver ETF (SLV 0.50%)
- Small Caps ETF (IWM 0.19%)
Fee competition is about to heat upthis week with all eight players entering the ring! 🔥
As of now, the SEC has given a thumbs up (preliminary approval) to atleast three out of the eight asset managers.
But guess what? All eight are expected to launch at the same time. 💥
🥛Milk Road Take: We’ve endured 18 weeks of the market doing the cha-cha (down/sideways).
Sentiment? Has been fairly garbage.
Meanwhile, stocks are flying through the roof.
And now, with the $ETH ETF set to drop, things are about to get wild.
As the Milk Man likes to say: “We’re on the brink of a price surge that’ll have you checking your portfolio more often than your Instagram.”
Want the full scoop on what’s next? Check out yesterday’s episode of The Milk Road Show with Matt Hougan where we dive into what to expect from the upcoming $ETH ETF in the short, medium, and long term.
You don't want to miss this one! 👂🎧
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TRUMP VP PICK JD VANCE IS PRO-CRYPTO 🆙
One of the Milk Man's rules was to never talk about politics, but that was until politicians started talking about crypto.
Whether you’re a Republican, Democrat, somewhere in between, or living in a different country, makes no difference.
The fact is, these presidential parties now have strong opinions on crypto and it will affect this industry we’ve all grown to love so much.
The other day, Trump announced his running mate: J.D. Vance. And folks, he’s looking like a sweet deal for the crypto community…
Who is J.D. Vance?
J.D. Vance is a 39-year-old Senator from Ohio, a state known for producing presidents and, apparently, crypto enthusiasts.
Vance has been serving as a senator since 2023 and has a background in venture capital.
He’s also a vocal advocate for open-source AI. But let's not bury the treasure—he loves crypto.
So let’s talk about his crypto cred.
Vance isn’t just a casual observer; he owns a hefty $250K in $BTC on Coinbase.
Making Vance the first Bitcoin holder to be featured on a US presidential ticket!
But, he’s not just a HODLer, he’s been going to bat for the industry:
- Voted to repeal SAB 121, which was seen as a major win for the crypto community.
- Slammed the SEC for mishandling The Debt Box incident.
- Introduced a bill to ensure customers like crypto firms are not discriminated against by banks.
Simply put, he gets the underlying principles of crypto.
Check out this tweet from a few years back:
So, why does this matter for our crypto? Picture this: Vance is like a fairy godmother for the digital asset world, ready to wave his wand and clear away the regulatory red tape.
🥛Milk Road Take: With Vance in the White House, we could see a shift towards even more crypto-friendly policies.
He’s not just talking the talk; he’s walking the walk with his Bitcoin holdings and legislative efforts.
In short, Vance’s pro-crypto stance could mean a brighter future for digital assets. It’s like the crypto industry just found another knight in shining armor, and his name is J.D. Vance.
With the US election day coming up in November, Lark Davis sees political turmoil as 1 of 6 major crypto catalysts that every investor should prepare for in 2024.
Tune in to our latest episode of The Milk Road Show to hear about the other 5!
Don’t miss out! 👂🎧
BITE-SIZED COOKIES FOR THE ROAD 🍪
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Grayscale is diving into the future with a new fund focused on decentralized AI. This fund aims to tackle AI-related problems, from deep fakes to data storage, by investing in projects like Bittensor and Filecoin. It’s all about leveraging blockchain for AI solutions.
Hong Kong is stepping up its game with plans to require licenses for all fiat-referenced stablecoin issuers. The HKMA and FSTB received overwhelming support for this move during a public consultation. All issuers will need to get a license from the HKMA to ensure full backing of stablecoins at all times.
FTX and the CFTC have agreed on a jaw-dropping $12.7 billion settlement. With $8.7B going to restitution and $4B in disgorgement, this deal could see FTX reorganizing and compensating 98% of its creditors. The big day for approval? August 6. Fingers crossed, creditors!
Hermetica is making waves with the launch of USDh, a Bitcoin-backed synthetic dollar. This new asset offers a yield of up to 12% through staking and promises stability by hedging $BTC with short futures.
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
