Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. SEC Approves Spot Ether ETFs: On May 23, the SEC approved several spot Ether ETFs from major financial institutions like VanEck, BlackRock, Fidelity, and Grayscale. While the ETFs await final SEC sign-off on their S-1 registration statements, Ether's price surged to over $3,900 following the announcement.

2. CBDC Anti-Surveillance State Act Passed US House: The U.S. House passed the CBDC Anti-Surveillance State Act on May 23, restricting the Federal Reserve from offering digital currency services directly to individuals.

3. Coinbase Reopens XRP Trading: Coinbase has resumed XRP trading for New York customers, following a nine-month suspension due to regulatory challenges. This decision follows a ruling that secondary sales of XRP do not constitute securities transactions.

4. 📈Technical Analysis Masterclass - If you’re an Ethereum maxi then you must’ve heard the SEC’s approval of Ether Spot ETFs by now. Know your next step by watching UseTheBitcoin’s latest Youtube video “Ethereum SPOT ETF Approval Analysis” or join our Discord Channel for more Alpha!

5. 💡Feature of the Day - Bybit CEO Refutes Insolvency Rumors: Bybit CEO Ben Zhou addressed insolvency rumors on May 22, assuring users of the exchange's financial stability. Rumors linked to a potential bug in Arkham Intelligence's proof-of-reserves graph suggested Bybit’s wallets were being drained.

    
   All this and more in today’s headlines!

📰 News Highlights:

SEC Approves Spot Ether ETFs [Source][Source][Source][Source]

In a landmark decision, the U.S. Securities and Exchange Commission (SEC) approved several spot Ether exchange-traded funds (ETFs) on May 23. This approval allows ETFs from major financial institutions like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise to be listed and traded.

Despite this approval, the ETFs still require the SEC’s sign-off on their S-1 registration statements before they can officially begin trading, a process that could take days to months.

Notably, the SEC did not approve Hashdex’s spot Ether ETF application, which has a final deadline set for May 30. This regulatory milestone coincides with the U.S. House of Representatives passing the Financial Innovation and Technology for the 21st Century Act, aimed at providing clearer regulatory guidelines for the cryptocurrency industry.

Following the announcement, the price of Ether surged to over $3,900 before settling at $3,759.

CBDC Anti-Surveillance State Act Passed US House [Source][Source]

The U.S. House of Representatives passed the CBDC Anti-Surveillance State Act on May 23, a bill aimed at restricting the Federal Reserve's ability to offer digital currency services directly to individuals.

The Republican-backed legislation, which amends the Federal Reserve Act of 1913, addresses concerns about potential misuse of central bank digital currencies (CBDCs) for surveillance and control, reflecting deep partisan divides over financial technology and privacy.

Supporters of the bill, such as Representative French Hill and Warren Davidson, argued that CBDCs could be used as surveillance tools, similar to China’s digital yuan.

They emphasized the need to limit government power over financial transactions to protect individual freedoms. Conversely, Democrats, including Maxine Waters and Brad Sherman, criticized the bill’s poor drafting and potential to undermine the U.S. dollar’s global competitiveness and disrupt existing payment systems.

Coinbase Reopens XRP Trading [Source]

Coinbase has resumed XRP trading for its New York customers, as announced by Chief Legal Officer Paul Grewal on May 23. The relisting follows Judge Analisa Torres's 2023 ruling that secondary sales of XRP do not constitute securities transactions, which led to the reversal of previous delistings by major exchanges.

The suspension was initially enforced after the New York Department of Financial Services (NYDFS) removed Ripple Labs from its approved list, forcing Coinbase to halt XRP trading for New York residents.

XRP’s price responded positively to the news, rising from $0.51 to nearly $0.53. Despite this, the token has faced downward pressure since its recent high in March 2024.

📈Technical Analysis Masterclass:

Ethereum SPOT ETF Approval Analysis

The Securities and Exchange Commission (SEC) recently granted approval for various investment funds tied to Ethereum. However, initial confusion arose due to statements suggesting the approval lacked confirmation from the SEC chair. This ambiguity prompted questions regarding the legitimacy of the approval.

Industry Response

• The cryptocurrency industry greeted this approval with enthusiasm, recognizing it as a significant advancement. Nevertheless, despite regulatory clearance, practical implementation and availability for trading may encounter delays.

Technical Analysis

• Examining the technical aspects, caution is advised regarding immediate investment. Analysis of price movements reveals a notable fluctuation, with Ethereum's value surging to $3,900 levels before abruptly dropping to $3,500 levels, then recovering to $3,700 levels. Further scrutiny at a lower timeframe illustrates the following:

  

• Observations suggest a rapid ascent followed by a sharp decline, with Ethereum barely touching the designated buying zone.

• This pattern implies a potential shakeout of weak investors.

Investment Recommendation

• In light of the current market conditions, an immediate buying recommendation is not warranted.

  

• A preference for a more stable support formation before re-entry is advised. Ideal conditions would include Ethereum consolidating within a specific price range, providing a clearer signal for investors.

While the approval of Ethereum SPOT ETFs signifies a significant milestone, investors are advised to exercise caution and await a more favorable entry point. Check out UseTheBitcoin’s latest Youtube video “Ethereum SPOT ETF Approval Analysis” for a deeper dive into market dynamics!

💡 Feature of the Day:

Bybit CEO Refutes Insolvency Rumors [Source][Source][Source]

Bybit CEO Ben Zhou addressed rumors of the platform's insolvency on May 22, assuring users that the exchange is financially stable.

The rumors, which spread rapidly on social media, were linked to a potential bug in a proof-of-reserves graph from Arkham Intelligence, suggesting Bybit’s wallets were being drained. Zhou refuted these claims, sharing proof-of-reserves data showing that Bybit holds assets exceeding 100% of user deposits.

Zhou’s response included a link to Bybit’s Nansen dashboard, which displayed over $11 billion in crypto assets across the exchange’s wallets.

He emphasized that the rumors lacked factual support and reassured users of the platform’s security and financial health.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com