In a significant market move, the price of ether (ETH) surged more than 10% to $3.4K after Bloomberg analysts substantially increased the likelihood of the U.S. Securities and Exchange Commission (SEC) approving spot ETH exchange-traded funds (ETFs). Previously, markets had largely anticipated SEC rejections of proposed funds this week.

Eric Balchunas, Bloomberg’s Senior ETF Analyst, tweeted that he and colleague James Seyffart raised their odds of spot Ether ETF approval to 75%, up from a mere 25%. Balchunas noted a change in sentiment within the SEC, suggesting a potential shift in the regulatory stance on what he termed an “increasingly political issue.” The sudden alteration caught many by surprise, leading to a flurry of activity as investors reassessed their positions.

The SEC faces imminent deadlines for final decisions on spot ETF approvals or denials, following multiple delays in reaching determinations on these funds.

The surge in ETH prices also lifted Bitcoin (BTC), which gained over 5% and approached the $70,000 threshold. Additionally, the Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale seeks to convert into a spot ETF, experienced notable movement. ETHE, which had been trading at a significant discount to its net asset value as investors speculated on SEC disapproval, surged more than 23% on Monday in response to the optimistic outlook for spot ETH ETF approval.

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After a decade-long tenure at Grayscale Investments, Michael Sonnenshein is stepping down as chief executive officer of the cryptocurrency asset manager. He will be succeeded by Peter Mintzberg, currently serving as the global head of strategy for asset and wealth management at Goldman Sachs Asset Management. Mintzberg is set to assume the role of CEO on August 15, according to a press release from Grayscale. During this time, Edward McGee, the Chief Financial Officer, will assume leadership of the company.

Sonnenshein, who joined Grayscale in 2014 and served as CEO for the past three years, decided to depart to pursue other interests, the company stated. The Wall Street Journal was the first to report this news.

During Sonnenshein’s tenure, Grayscale achieved a significant victory against the SEC, leading to the approval of the first spot-Bitcoin ETFs. The company had long sought to convert its Grayscale Bitcoin Trust (ticker GBTC) into an exchange-traded fund. However, since the conversion, GBTC has experienced substantial outflows, with investors gravitating towards newly launched, more cost-effective spot-bitcoin ETFs.

GBTC, once a primary avenue for investors to gain exposure to Bitcoin without directly purchasing the token, reached assets of nearly $44 billion in 2021. However, since the ETF conversion in January, GBTC has seen outflows exceeding $17.6 billion. In contrast, other US spot-bitcoin funds have attracted positive inflows this year, with BlackRock’s $15.6 billion leading the pack. GBTC’s 1.5% expense ratio has been cited as a deterrent for investors, compared to the lower fees charged by other funds.

Sonnenshein defended GBTC’s relatively high fee in a January interview with Bloomberg TV, citing the company’s size, liquidity, and track record. Despite Grayscale’s efforts to convert GBTC into an ETF, the SEC rejected the proposal in 2022, arguing that a Bitcoin-based ETF lacked sufficient oversight to detect fraud. Grayscale responded with a lawsuit against the SEC, alleging discrimination against its product while approving similar Bitcoin-futures ETFs.

The search for a new CEO began in late 2023, according to sources familiar with the matter cited by the Wall Street Journal. However, the decision was unrelated to GBTC’s performance or outflows.

The crypto asset class stands at a crucial turning point, making this the opportune time for a seamless transition, Sonnenshein expressed in a press release.

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Morgan Stanley (NYSE:MS)  disclosed a substantial stake in Grayscale’s Bitcoin Trust , totaling nearly $270 million as of March 31, according to a recent 13F filing.

This investment, along with similar disclosures from banking giants like JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and UBS (NYSE:UBS), underscores growing institutional interest in cryptocurrency among wealth management clients.

It’s worth noting that these holdings likely represent investments made on behalf of clients, rather than a direct bet on Bitcoin by the banks themselves.

Following the approval of spot Bitcoin exchange-traded funds in January, Morgan Stanley began offering allocations to its clients, albeit on an unsolicited basis. This means that clients had to propose the investment to the broker, reflecting the cautious approach taken by financial institutions towards cryptocurrency investments.

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In a significant legal development, a Nigerian court has determined that Binance executive Tigran Gambaryan can be prosecuted on behalf of the cryptocurrency exchange in an ongoing tax evasion case.

The case involves Binance and its executives, including Gambaryan, a U.S. citizen serving as head of financial crimes compliance, and British-Kenyan national Nadeem Anjarwalla, who holds the position of regional manager for Africa. They collectively face four counts of tax evasion and have also been accused of laundering over $35 million and engaging in specialized financial activities without proper licensing. All parties have pleaded not guilty to the money laundering charges.

Following the court ruling, Binance’s legal representation declined to comment, as did Gambaryan’s lawyer.

Expressing disappointment with the court’s decision, a spokesperson for Binance emphasized that Gambaryan, who lacks decision-making authority within the company, remains detained despite what they perceive as baseless charges. The spokesperson urged for Gambaryan’s release pending ongoing discussions between Binance and Nigerian government officials.

While Gambaryan remains in custody, Anjarwalla fled the country in March, prompting Nigeria’s security adviser’s office to collaborate with Interpol to pursue his arrest.

Binance’s CEO has criticized Nigeria for what he perceives as a troubling precedent, particularly after executives were initially invited to the country for discussions with authorities and then detained as part of a broader crackdown on cryptocurrency-related activities.

Notably, Binance itself has not been directly implicated in the tax evasion case by Nigeria’s Federal Inland Revenue Service (FIRS), which has indicated that Gambaryan may face charges on the exchange’s behalf.

The court ruling stipulated that Gambaryan, as the chief financial compliance officer of Binance, should be served with the charges against the exchange. This decision was based on his role and his appointment to represent Binance in a meeting held in Nigeria.

Gambaryan is scheduled to be arraigned in court on Wednesday to enter a plea on behalf of Binance. However, his bail application related to the money laundering case was denied by the court.

Nigeria has attributed its currency challenges in part to Binance, citing cryptocurrency platforms as preferred avenues for trading the Nigerian naira amid persistent dollar shortages in the country.

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The Internet Computer-based Bitfinity platform introduces its Ethereum Virtual Machine, facilitating smart contract execution for Bitcoin protocols and enabling Bitcoin DeFi applications with Runes support.

Built on the Internet Computer protocol, Bitfinity integrates with the Bitcoin network, offering asset bridging to other blockchains. Leveraging Ethereum’s smart contract language Solidity, developers can access Bitcoin-based tokens, including BTC, Ordinals, and Runes.

The Bitfinity EVM enables the deployment of Bitcoin-based Solidity smart contracts, expanding functionality for transferring assets. As an Ethereum Virtual Machine, it serves as the backbone for executing smart contracts, akin to an operating system for Ethereum.

With Runes gaining traction since its launch alongside the Bitcoin halving event, Bitfinity aims to tap into this momentum by enabling smart contract capabilities, facilitating the development of Bitcoin DeFi applications. Despite a initial surge in activity, Runes’ network fees have stabilized following the launch frenzy.

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