ETH Navigates Storm of SEC Moves and Market Fears

However, investors also responded adversely to the SpaceX news and the SEC progress toward interlocutory appeal of the Judge Torres ruling in the SEC v Ripple case.

SEC Chair Gary Gensler threw ETH into the SEC Securities Basket after the Merge. Ironically, after the Williman Hinman support for ETH in the infamous speech, ETH is now also at the mercy of the SEC, and the SEC’s progress toward an appeal of the July 13 Court rulings.

News of the SEC preparing to approve Ether-Futures ETFs failed to deliver a full recovery of the current week’s losses. However, price action was evident, with ETH recovering from a Thursday low of $1,572.

According to the Bloomberg report, firms including Volatility Shares, Bitwise, and ProShares have filed Ether-Futures ETF applications. However, there are no signs of an SEC willingness to approve spot ETFs. The future of spot-Ether ETFs likely rests on the fate of the current batch of spot-BTC ETF applications.

As noted by the Bloomberg report, the outcome of the Grayscale Investments LLC case against the SEC for rejecting an application to convert its Bitcoin trust to an ETF could prove pivotal.

Hong Kong Shanghai Bank (HSBC) started allowing its clients to trade BTC and ETH Futures ETFs in June.

While the SEC approval of one, some, or all of the ETH-Futures ETFs would be a step forward, investors are mindful that the SEC would need to approve spot ETFs to fuel the next wave of inflows into the digital asset space.

Staking Statistics Reflect Opportunistic Inflows

Staking inflows bounced back, with investors taking advantage of current ETH price levels.

According to CryptoQuant, staking inflows surged from 36,064 on Thursday to 92,000 on Friday. However, inflows remained below the 100,000 threshold. A sustained move through the 100,000 level would signal a shift in market sentiment.