The Pomp Letter - The Ether ETFs Are Causing Controversy
To investors, The SEC approved important rule changes for various traditional exchanges yesterday which will allow them to list spot Ether ETFs in the near future. This is another step towards Wall Street allocating to the second largest crypto asset in the world. It is important to call out that the actual ETF applications from various issuers have not yet been approved, but it is now obvious that the SEC is going to allow the Ether ETFs to be traded. That is the most important part. Given that the exchange rule changes have been approved, but the individual funds have not yet been approved, there are some interesting nuances that have been introduced. First, prediction markets are causing some controversy between their users. Polymarket had a prediction market for the approval of the Ether ETF. When the SEC approved the rule changes, people who had bet that the SEC would approve the ETF funds began celebrating. But the people who had bet against the ETF approval claimed that the rule changes were not a technical approval of the ETFs themselves. I tend to agree with the people arguing that the actual ETFs have not technically been approved, yet the spirit of the prediction market is obvious that people were betting on a broader yes/no from the SEC. Regardless of my thoughts, Polymarket has ruled that the recent developments from the SEC is enough to give the “yes” bettors the victory. You can see the odds change on this chart and then read the clarification provided by Polymarket below. The second controversy that has been spun up is whether the SEC should approve all eight ETF applications simultaneously or if they should approve the applications in the order that they were filed. Historically, the SEC has created an unspoken rule of “first application in, first application approved.” This changed recently when the SEC approved all spot bitcoin ETFs at the same time. In my opinion, the approval of so many applications simultaneously creates a more free market, which means that the market is ultimately the referee on where capital will flow. With this said, it is not lost on me that the incentive for people to file for ETFs early is that they could be listed first. Incentives are essential to capital markets, so this situation is not as clear as simply saying “make it fair!” Matthew Sigel, VanEck’s Head of Digital Asset Research, said the following:
Regardless of who is listed first, it is clear that the Ether ETFs are inbound. I’ll be watching to see how much attention and capital flows they receive. My guess is that we won’t see anything close to the Bitcoin spot ETF inflows, but I was surprised by how large and fast capital came into those funds. Hopefully I don’t make the same mistake twice here. Have a great Memorial Day weekend. I’ll talk to everyone on Tuesday. -Anthony Pompliano Jack Mallers is the Founder & CEO of Strike. In this conversation, we talk about the macro environment, the edge case, use case, investment case for bitcoin, bitcoin vs shitcoins, politics, regulation, and why he believes Wall Street will capitulate and all become bitcoiners. Listen on iTunes: Click here Listen on Spotify: Click here Strike CEO Jack Mallers on Bitcoin, Macro Environment, and AltcoinsPodcast Sponsors
You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. You're currently a free subscriber to The Pomp Letter. For the full experience, upgrade your subscription. |
Older messages
Is Bitcoin Ready To Break Out?
Monday, June 3, 2024
Listen now (3 mins) | To investors, Bitcoin has been trading sideways for a number of weeks. This follows the euphoria from the bitcoin spot ETF approvals, along with the market-wide exhale post-
Podcast app setup
Monday, June 3, 2024
Open this on your phone and click the button below: Add to podcast app
Podcast app setup
Monday, June 3, 2024
Open this on your phone and click the button below: Add to podcast app
Corporations Want A Lot More Bitcoin
Monday, June 3, 2024
Listen now (3 mins) | Today's letter is brought to you by Consensus 2024! Consensus 2024 is happening May 29-31 in Austin, Texas. This year marks the tenth annual Consensus, making it the largest
The Legacy Exchanges Want To Get In The Crypto Game
Monday, June 3, 2024
To investors, Politicians on both sides of the aisle are coming together to support crypto. The industry has become too large and many of the participants are single-issuer voters going into
You Might Also Like
Increase your product`s value by 360%
Wednesday, July 3, 2024
I'm working on a startup newsletter you'll love! To get on it early, subscribe here: Great Startups (https://GreatStartups.com/) Today's hack Do you want your customers willing to pay you
🔍 How Dupe.com Gained 32M Views in 60 Days
Wednesday, July 3, 2024
July 02, 2024 | Read Online fb tw in email All Case Studies 🔍 Learn About Sponsorships Founder-led content is the buzz. And I'm a megaphone for it. But what about an account that drove 32M views in
🛍️ What are 2024’s top online shopping categories?
Tuesday, July 2, 2024
Find your next great product idea inside. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
💸 The Surprising Power of Taking Imperfect Action
Tuesday, July 2, 2024
Perfect is the enemy of good
These Amazon products have zero storage fees [Roundup]
Tuesday, July 2, 2024
Hey Reader, Have you ever thought of selling more than just physical products on Amazon? Well, you're in luck because Amazon actually has a vast list of digital products that they'll accept on
Silvergate Settles with SEC and Regulators
Tuesday, July 2, 2024
Plus Circle Gains EU License for Stablecoin Issuance
ET: July 2nd 2024
Tuesday, July 2, 2024
Exploding Topics Logo Presented by: Exploding Topics Pro Logo Here's this week's list of rapidly trending topics, insights and analysis. Topic #1 Synthetic Data Chart Synthetic Data is data
Risk-Free Return vs Return-Free Risk
Tuesday, July 2, 2024
Listen now (3 mins) | To investors, US Treasuries have long been considered the risk-free return. You could buy these assets, hold them to maturity, and you were guaranteed a pre-determined return.
Beehiiv's Acquisition, BuzzFeed's Struggles, and Annoying Ads Exposed
Tuesday, July 2, 2024
Beehiiv's big acquisition and the behind-the-scenes drama at BuzzFeed's 'Hot Ones' plus Stacked Marketer Report!
The American Millennium
Tuesday, July 2, 2024
A Fourth of July Tribute to a Nation on the Rise ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏