The U.S. Securities and Exchange Commission (SEC) has officially approved eight spot Ethereum exchange-traded funds (ETFs), marking a pivotal moment in the evolution of cryptocurrency within mainstream finance. The approved issuers include financial powerhouses such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark Invest, Invesco Galaxy, and Franklin Templeton.
This approval was confirmed through an omnibus order accepting the 19b-4 filings from these institutions. However, it’s important to note that trading will not begin immediately. Each ETF must first have its S-1 registration statement declared effective by the SEC—a process that Bloomberg ETF analyst James Seyffart estimates could take anywhere from several weeks to a few months.
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A Sudden Regulatory Shift
The SEC's decision represents a significant and somewhat unexpected policy shift. Previously, the commission had shown minimal engagement with Ethereum ETF applicants, drawing skepticism about approval prospects. The sudden green light has led to speculation about political influence, especially following a bipartisan letter from House lawmakers urging the SEC to approve Ethereum ETFs in the name of regulatory consistency after the earlier approval of spot Bitcoin ETFs.
Market anticipation surged ahead of the official announcement. One clear indicator was the shrinking discount on Grayscale’s Ethereum Trust (ETHE), which narrowed from -24% to just -6%. This movement reflects investor confidence that ETHE will soon convert into a spot ETF, enabling shareholders to redeem shares for the underlying ether at market value.
Market Impact and Investor Outlook
While the approval is historic, experts believe Ethereum ETFs may not replicate the massive capital inflows seen with Bitcoin ETFs. According to Bloomberg analyst Eric Balchunas, Ethereum-based funds could accumulate 10–15% of the assets under management (AUM) compared to their Bitcoin counterparts. That would translate to approximately $5–$8 billion in total AUM—still a strong performance for newly launched products.
This milestone underscores growing institutional acceptance of digital assets and signals deeper integration of blockchain technology into traditional investment portfolios.
"The approval of spot Ethereum ETFs is not just a win for crypto investors—it's a validation of Ethereum’s role as a foundational layer in decentralized finance." – Industry Analyst
Gala Games Hit by $200M Exploit; Partial Funds Returned
In a separate but notable incident, Gala Games suffered a major security breach where an attacker minted 5 billion GALA tokens—worth over $200 million at the time. The exploit caused GALA’s price to drop by 15%, falling to $0.040.
However, there’s been a surprising turn: the attacker has returned 5,913.2 ETH (valued at $22.5 million), matching the proceeds from the sale of 600 million GALA tokens. The remaining 4.4 billion tokens were burned, reducing potential long-term market dilution.
Gala Games co-founder Eric Schiermeyer, known online as Benefactor, acknowledged lapses in internal controls: “We messed up our internal controls. This shouldn’t have happened.” The team acted quickly, securing unauthorized access within 45 minutes and confirming that ETH-for-GALA swaps remained protected via multi-sig wallets.
The company is now working with the FBI, Department of Justice, and international authorities to identify the perpetrator. A community-driven node vote will determine future token distribution policies.
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Taiko Announces Genesis Airdrop Ahead of Mainnet Launch
Taiko, an Ethereum Layer 2 ZK-Rollup project, has announced a "genesis airdrop" ahead of its mainnet debut. A total of 5% of Taiko’s 1 billion TKO token supply will be distributed to early contributors, including:
- Testnet participants
- Block proposers and provers
- GitHub contributors
- Ethereum ICO participants
The broader token allocation includes:
- 20% to Taiko Labs and core team
- 16.88% held in Taiko Foundation reserves
- 11.62% allocated to investors
- 20% reserved for the DAO Treasury
- Additional portions for grants, liquidity, and a future Trailblazer airdrop
Taiko operates as an Ethereum-equivalent ZK-EVM (Type-1), ensuring full compatibility with Ethereum’s ecosystem. Backed by $22 million in funding—$10 million from Sequoia China and $12 million led by Generative Ventures—the project has undergone six testnet phases before mainnet launch.
Daniel Wang, co-founder and CEO of Taiko Labs, emphasized fairness over perfection: “Congratulations to those who received TKO, and apologies to those who did not.”
Kabosu, the Face of Dogecoin, Passes Away at 18
Kabosu, the beloved Shiba Inu who became the iconic face of Dogecoin (DOGE), passed away peacefully on May 24 at the age of 18. Her owner shared the news in a heartfelt blog post, while the official Dogecoin account confirmed her passing on social media:
“Today, Kabosu, our community's shared friend and inspiration, peacefully passed, in the arms of her person. The impact this one dog has made across the world is immeasurable.”
Her viral photo from the early 2010s inspired the creation of Dogecoin in 2013. Since then, DOGE has grown into the largest memecoin by market cap and inspired countless others like Shiba Inu and Floki.
Over the past 24 hours following her passing, Dogecoin saw $2.87 billion in trading volume—highlighting her enduring cultural significance.
A memorial ceremony will be held on Sunday at Flower Kaori in Narita City, Japan.
Frequently Asked Questions
Q: When will spot Ethereum ETFs start trading?
A: While approved via 19b-4 filings, trading cannot begin until each issuer’s S-1 registration is effective. This process may take several weeks to months.
Q: How does an Ethereum ETF differ from a Bitcoin ETF?
A: Both offer exposure to their respective assets without direct ownership. However, Ethereum’s use in DeFi and smart contracts may attract different investor profiles compared to Bitcoin’s store-of-value narrative.
Q: Will Ethereum ETFs boost ETH’s price?
A: Historically, Bitcoin ETF approvals preceded price rallies. While similar momentum is possible, analysts project more modest inflows for ETH ETFs—around 10–15% of BTC ETF volumes.
Q: What caused the Gala Games exploit?
A: An attacker exploited internal control weaknesses to mint unauthorized GALA tokens. The team responded within 45 minutes and secured critical systems.
Q: How can I qualify for Taiko’s airdrop?
A: Eligibility includes testnet usage, GitHub contributions, block production, or early Ethereum participation. Exact criteria remain undisclosed to prevent gaming.
Q: Why is Kabosu important to crypto culture?
A: Her image became a global meme symbolizing fun and accessibility in crypto—helping Dogecoin gain mainstream traction and inspiring a wave of community-driven projects.
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The convergence of regulatory milestones, technological innovation, and cultural icons defines today’s dynamic crypto landscape. From institutional ETF approvals to community-led Layer 2 rollouts and emotional tributes to legendary meme figures, Ethereum and digital assets continue evolving beyond speculation into foundational financial infrastructure.