New York, NY – Grayscale, a prominent crypto investment firm, has made significant strides in its efforts to launch an ether exchange-traded fund (ETF). The company recently filed Form S-3 with the U.S. Securities and Exchange Commission for the Grayscale Ethereum Trust (ETHE), a crucial step in the process of transforming the fund into an ETF. Additionally, Grayscale also submitted filings for a Grayscale Ethereum Mini Trust, which is expected to have a lower management fee compared to ETHE.
While the SEC has already approved bitcoin ETFs earlier this year, the regulator has yet to give the green light for an ethereum ETF. Despite anticipation for an update next month, there is skepticism surrounding an approval within the industry. Grayscale, known for its involvement in getting a bitcoin ETF approved, including legal action against the SEC, operates the largest bitcoin ETF, Grayscale Bitcoin Trust (GBTC), which has experienced outflows since its conversion earlier this year.
London, UK – Capital Economics predicts the possibility of Federal Reserve rate cuts starting in September. The firm’s group chief economist, Neil Shearing, emphasizes that strong growth and inflation metrics coupled with concerns about inflation persistence may lead the Fed to postpone rate cuts to later in the year unless prompted by an economic shock. Capital Economics also suggests that the European Central Bank and the Bank of England are likely to implement monetary policy adjustments before the Fed based on economic conditions in their respective regions.
Back in New York, NY – The S&P 500 Financials sector is outperforming the broad market by 3 percentage points in 2024, with a 9.3% gain compared to the S&P 500’s 6.3% rise. Strategas Securities’ research team noted the strength of financial stocks, particularly in Capital Markets, Banks, and Consumer Finance, as part of the market’s response to changing conditions. Notably, both U.S. and global financial stocks have shown resilience, with European and Japanese banks leading the way in performance.
In after-hours trading, several stocks made significant moves. Tesla, despite missing expectations, saw an 8.2% rally on new initiatives, while Mattel experienced a 2.4% jump after surpassing earnings projections. Visa also rose by 2.6% following a positive earnings report. S&P 500 futures showed gains shortly after 6 p.m. ET, with futures tied to the index increasing by 0.2% and Nasdaq 100 futures rising by 0.4%. Dow futures added 7 points, edging above the flatline.
These developments in the financial and crypto markets highlight the ongoing evolution and volatility in the investment landscape, shaping the outlook for investors and institutions navigating these challenging times.