Markets
Crypto Markets Jump After SEC Closes Ethereum 2.0 Investigation
Spot Bitcoin ETFs recorded $152 million in net outflows on Tuesday.
Crypto markets rallied on Wednesday after the SEC officially closed its investigation into Ethereum 2.0.
While Bitcoin is trading relatively stable, Ethereum rose 4%, bringing its monthly gain to 14%. Meanwhile, Polkadot and Solana rose 3%.
Many tokens closely linked to Ethereum, such as Lido DAO’s governance token (LDO), Ethereum Name Service (ENS), and Maker (MKR), have risen between 12% and 20% in the last 24 hours.
Yield trading protocol Pendle is today’s biggest winner among the top 100 digital assets by market capitalization after a 21% surge.
On June 18, Consensys, the blockchain software development company that recently sued the SEC over its attempts to classify ETH as a security, announced that the SEC is closing its investigation into Ethereum.
“The SEC Division of Enforcement has notified us that it is closing its investigation into Ethereum 2.0,” Consensys posted on X. “This means that the SEC will not file charges alleging that ETH sales are securities transactions.”
Ethereum 2.0 was a term previously used to describe Ethereum’s transition to a Proof of Stake (PoS) network.
Spot bitcoin exchange-traded funds (ETFs) recorded $152 million in net outflows on Tuesday, continuing a four-day streak of outflows. Fidelity’s FBTC led the exits with $83 million, followed by Grayscale’s GBTC with $62 million, according to Far side data.
Meanwhile, US stock markets traded slightly higher on Wednesday. The Dow is up 0.15%, while the Nasdaq Composite is flat and the S&P 500 is up 0.30%.