Wed Sep 25 04:03:41 UTC 2024: ## Crypto ETFs: Why Ethereum Lags Behind Bitcoin, Custody Concerns Linger, and Other Market Updates

**Ethereum ETF struggles:** Ava Labs President John Wu believes Ethereum is primed for success but acknowledges the lack of traction for Ethereum ETFs compared to Bitcoin ETFs. He remains optimistic that ETF access will attract more investors to the crypto space.

**Custody focus:** BlackRock’s head of digital assets, Robbie Mitchnick, insists no significant changes have occurred in crypto ETF custody despite recent developments. BNY Mellon, however, is nearing the launch of custody services for Bitcoin and Ether held by ETF clients.

**FTX fallout:** Galois Capital Management will pay a $225,000 fine for violating client asset safeguarding rules, including holding funds with the now bankrupt FTX exchange. Meanwhile, Sam Bankman-Fried, former FTX co-founder, is seeking a new trial, while Caroline Ellison, a key witness in the case, was sentenced to two years in prison and ordered to forfeit $11 billion.

**Other market news:**

* MicroStrategy will use proceeds from a $1.01 billion bond sale to buy more Bitcoin and redeem high-yielding securities.
* BNY Mellon’s Geoff Yu suggests a lack of investment in non-US markets.
* Apollo and State Street are proposing a private credit ETF.
* Fintech startup Intelligent Alpha is launching a chatbot-powered ETF.
* Former Celsius Network customers are exploring the possibility of liquidating their Bitcoin mining firm, Ionic.
* Texas Bitcoin miners are profiting from selling power back to providers during peak demand.
* Bitcoin’s price has been declining amid economic fears and government sell-offs.
* Crypto lender Abra settles with the SEC over unregistered securities charges.
* HSBC’s incoming CEO is reportedly considering middle-manager cuts.
* Researchers suggest cryptocurrency holders exhibit higher levels of “dark” personality traits.
* OpenAI’s ChatGPT chatbot, initially heralded as a transformative technology, has not yet delivered on its initial hype.
* Singapore is allowing cashless gaming at its casinos but will not permit the use of crypto.
* Grayscale Investments is offering a Grayscale XRP Trust, boosting the price of XRP.
* A new round of funding could value AI software startup Poolside at $3 billion.
* Dragonfly Capital is seeking to raise $500 million for its fourth fund, focusing on early-stage projects.
* Two former Coinbase employees are launching a cryptocurrency platform called TrueX.
* The SEC and Coinbase are clashing in court over crypto rulemaking.
* Kamala Harris has pledged to encourage crypto business while protecting consumers.
* Turkey has ruled out additional taxes on stock trading and crypto profits.
* Tokenized money-market funds are gaining traction.

The news highlights the evolving landscape of the crypto market, with continued interest in ETFs, ongoing scrutiny of custody arrangements, and lingering repercussions from the FTX collapse.

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