The U.S. Securities and Exchange Commission (SEC) appears to be nearing a decision on spot Ether exchange-traded funds (ETFs), as the Cboe exchange has published amended 19b-4 filings in response to regulatory feedback.

The Trump campaign announced on Tuesday that it will now accept cryptocurrency donations, in a move that allows the former President’s supporters to donate using “any cryptocurrency accepted through the Coinbase Commerce product.”

Established financial institutions and cryptocurrency firms have set their sights on the digital assets custody market for institutional investors, in a trend fueled by the rise of institutional investment in the space after the launch of spot Bitcoin exchange-traded funds in the US.

Top stories in the Crypto Roundup today:

• SEC Nears Decision on Spot Ether ETFs
• Trump Campaign Starts Accepting Cryptocurrency Donations
• Crypto Custody Industry Grows Amid Rising Institutional Adoption
• Chart of the Week: ETH Price Surges Following Increase in ETFs’ Approval Probability

SEC Nears Decision on Spot Ether ETFs

The U.S. Securities and Exchange Commission (SEC) appears to be nearing a decision on spot Ether exchange-traded funds (ETFs), as the Cboe exchange has published amended 19b-4 filings in response to regulatory feedback.

The Cboe is associated with several spot Ether ETF applications, and exchanges supporting various applicants including VanEck, Fidelity, Invesco/Galaxy, Ark/21Shares and Franklin Templeton have recently filed revised forms with the regulator.

These filings came after the SEC requested standardized revisions where applicants could all use the same wording. While final approval of the applications remains uncertain, the feedback has boosted optimism within the industry, with some anticipating approvals as early as this week.

The SEC’s current stance appears to restrict ETH staking for the potential ETFs, as several applicants have recently amended their S-1 registration statements to remove staking from their documents.

Trump Campaign Starts Accepting Cryptocurrency Donations

The Trump campaign announced on Tuesday that it will now accept cryptocurrency donations, in a move that allows the former President’s supporters to donate using “any cryptocurrency accepted through the Coinbase Commerce product.”

The announcement ties President Joe Biden, who is currently running for reelection against Trump, to Senator Elizabeth Warren of Massachusetts, a vocal cryptocurrency critic who has been fighting the nascent industry.

The campaign on social media said that “Biden surrogate Elizabeth Warren said in an attack on cryptocurrency that she was building an ‘anti-crypto army’ to restrict Americans’ right to make their own financial choices,” and suggested the campaign supporters will “build a crypto army moving the campaign to victory.”

The move opens up a new source of potential funding for the Trump campaign which has managed to outraise the Democratic incumbent in April, but still lags behind when it comes to cash on hand.

Crypto contributions will be reported as in-kind donations, akin to gifts of stock. The campaign will have the option to either liquidate the digital currency or hold onto it.

Crypto Custody Industry Grows Amid Rising Institutional Adoption

Established financial institutions and cryptocurrency firms have set their sights on the digital assets custody market for institutional investors, in a trend fueled by the rise of institutional investment in the space after the launch of spot Bitcoin exchange-traded funds in the US.

Two infrastructure providers, Taurus and Fireblocks, are at the forefront of this expansion. Taurus, a Swiss company, recently announced the opening of an office in Vancouver, Canada, citing "growing demand" for tokenization and custody services, with its co-founder noting further expansion is contingent on “a number of pending deals.”

Fireblocks, another player in the space, is seeking to establish a limited-purpose trust company regulated by the New York Department of Financial Services (NYDFS), with the company seeing a “lack of qualified custodians in the United States covering digital assets.”

Regulatory hurdles are seen as a key factor limiting the number of traditional custodians entering the market, and Fireblocks’ firm is set to be dedicated to registered investment advisers, asset managers, venture capitalists and exchange-traded fund providers.

The firm will just offer custody of Bitcoin, Ether, and three stablecoins initially, in accordance with the NYDFS’ preapproved token “green list.” It comes as the crypto custody market grows significantly, having reached $448 billion in 2022.

Established crypto players including Ripple, Kraken, and Coinbase are already offering crypto custody services to institutional clients, but traditional financial institutions are also taking notice. HSBC, for example, has announced plans for a digital asset custody platform focused on tokenized securities, while BNY Mellon, the nation's oldest bank, launched a similar platform in 2022 to cater to institutional clients.

Chart of the Week: ETH Price Surges Following Increase in ETFs’ Approval Probability

Ethereum surged 17.8% in just two hours, from 10:46 PM on May 20 to 12:46 AM on May 21 over revised predictions from ETF analysts regarding the SEC's potential approval of a spot Ether ETF.

Trading volume soared by 618%, reaching $21 million within minutes, according to our CCIX index for ETH-USD.

State of the Crypto by Top Tier Exchange Volume

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