This Week in Crypto: Spot Ethereum ETF Approval, US CPI Data Release, and More

This week, major news has captured the attention of crypto investors and enthusiasts alike. A potential spot Ethereum exchange-traded fund (ETF) approval

Several key events are poised to influence the crypto market this week, including a potential vote on H.J. Res. 109 to repeal SAB 121, the possible approval of spot Ethereum ETFs, and the release of crucial US CPI data.

This week, US lawmakers are expected to vote on H.J. Res. 109, a resolution to overturn the SEC Staff Accounting Bulletin 121 (SAB 121). According to House Majority Leader Steve Scalise's weekly schedule, the resolution could be considered on Tuesday or Wednesday.

This bulletin requires financial institutions to list their customers' digital assets on their balance sheets. Critics argue that this rule effectively keeps digital assets out of the US financial system.

Both the House and Senate approved the repeal of SAB 121 in May. However, President Joe Biden vetoed the bill, emphasizing his administration's commitment to not supporting “measures that jeopardize the well-being of consumers and investors.” Many industry experts and investors believe this will be a crucial vote for the broader crypto industry.

Meanwhile, market observers are eagerly awaiting the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). After several asset managers updated their S-1 forms, experts predict these ETFs could launch soon.

Bloomberg Intelligence’s ETF analysts, James Seyffart and Eric Balchunas, suggest that these ETFs “could potentially list later next week or the week of July 15.” Nate Geraci, president of ETF Store, echoes this sentiment.

“Will be shocked if spot ETH ETFs are not trading within the next 2 weeks. Later next week is a possibility, but I think the week of July 15 is more likely,” he noted.

However, the SEC’s approval process remains critical for these ETFs to commence trading. While the SEC has approved the 19b-4 forms, issuers still need their S-1 forms approved to proceed.

Despite the optimism surrounding the final approval of these ETFs, the price of ETH has decreased significantly since the approval of the 19b-4 forms in late May. According to BeInCrypto data, ETH is now trading at $2,887, marking a roughly 26% decrease since the preliminary approval date.

Read more: Ethereum ETF Explained: What It Is and How It Works

Another critical event this week is the US Consumer Price Index (CPI) data, scheduled for release on July 11. The previous CPI data for May showed no month-to-month increase, which offers some respite to inflation concerns.

Projections from the Federal Reserve Bank of Cleveland suggest that the monthly increase in headline CPI inflation for June will be 0.08%, with core CPI inflation, excluding food and energy, at 0.28%. Although these estimates are not always precise, they are generally accurate in indicating where monthly inflation figures might land.

Nonetheless, the Federal Reserve will closely monitor the upcoming figures to gauge inflation trends and make informed policy decisions. This data will be considered at the central bank's next policy meeting on July 30-31.

Lower inflation figures could indicate economic stability, potentially boosting investor confidence and driving capital into riskier assets like cryptocurrencies. Conversely, if inflation exceeds expectations, the Federal Reserve may opt to hold or raise interest rates, injecting uncertainty into the markets.

Due to their volatile nature, cryptocurrencies could undergo significant price changes in reaction to these economic indicators. Thus, investors should actively monitor CPI data and the Fed’s decisions to navigate the market.

Finally, Jupiter, a Solana-based decentralized exchange (DEX), is set to implement a significant change in its tokenomics with a proposal to reduce the total supply of its native token, JUP, by 30%. This proposal, shared by the pseudonymous co-founder Meow, includes a voluntary team cut of 30% from their allocated tokens and a corresponding reduction in Jupuary emissions. The governance vote on this proposal will occur sometime in July.

Meow emphasized that these changes are possible because Jupiter does not have direct investors, allowing the team to make bold moves to optimize the platform’s tokenomics. The proposed changes aim to address high emissions levels, streamline the platform’s financial structure, and engage the community more deeply in Jupiter’s long-term vision.

Read more: Top 7 Projects on Solana With Massive Potential

Arbitrum 기반 영구 DEX인 Vela는 7월 8일 Vela V2를 출시할 예정입니다. 이 버전은 업그레이드된 토큰경제학, 새로운 거래 경쟁 및 향상된 기능을 플랫폼에 제공합니다.

Vela V2에는 유연한 베스팅 옵션, 거버넌스 투표 및 단순화된 스테이킹 페이지. 또한 참여를 장려하고 활성 사용자에게 보상하기 위해 Vela V2는 그랑프리 시즌 3에서 500,000 ARB 상금 풀을 도입할 예정입니다.

AAA 게임용으로 설계된 레이어 3(L3) 솔루션인 Xai

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