🚀 SEC says YES to Ethereum ETFs

Today’s newsletter is 526 words - a 3-minute read (5-minute if you take your time…🐌)

Welcome back everyone!

Excited to have you join us: We’re Chris & Nolan (@chrisnolansf), and welcome to SF Whisper - a newsletter covering the most interesting business and local news of San Francisco.

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Anyways. Let’s get started -

SEC 👌 Ethereum ETFs, Coinbase Poised For a Win

SEC Greenlights Ether ETF Listings:

In a surprising move, the U.S. Securities and Exchange Commission (SEC) has approved applications from major exchanges like Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of ether. This is a significant win for the cryptocurrency industry, which had expected the SEC to reject the filings until earlier this week when the regulator asked exchanges to fine-tune their applications.

Coinbase's Custodial Dominance and Role

At least six out of the nine investment firms planning to issue ether ETFs, including giants like VanEck, ARK Investments/21Shares, and BlackRock, have chosen Coinbase as their custodian. This means Coinbase will be responsible for safeguarding billions of dollars worth of ether assets. The exchange is also expected to profit as a trading partner for these ETFs.

Regulatory Hurdles and Potential Risks

While the SEC's approval for ether ETF listings is a positive development, issuers still need the regulator's approval for ETF registration statements detailing investor disclosures before the products can start trading. This process could take months, according to industry experts. Additionally, Coinbase faces its own regulatory challenges, as the SEC sued the exchange last June for allegedly acting as an unregistered securities exchange, broker, and clearing agency for certain tokens. Concerns have also been raised about the concentration risk associated with a single custodian holding a significant portion of crypto assets and Coinbase's past trading outages during high-volume periods.

Despite these challenges, the approval for ether ETF listings marks a significant endorsement for the cryptocurrency industry and its efforts to push into mainstream finance.

✈️ this weekend? Get ready for an extra busy SFO

Ready for Takeoff:

Starting tomorrow Friday, SFO is bracing for about 147,000 passengers on day one of what promises to be a very busy traveling season.

From Memorial Day through Labor Day, the airport expects to serve approximately 15.5 million passengers, revving back up to 86% of its pre-pandemic hustle and bustle.

Some Tips from the Airport:

Arrive 2 hours early for domestic flights and 3 for international

Parking will be a tight, book in advance or better, take uber or train instead

Renovations, Renovations:

Final phase of $2.4B Harvey Milk Terminal 1 opens June 11th

SFO is also kicking off in July a $2.5B Terminal 3 modernization project

Catch up on the latest:

• UK opens office in San Francisco to tackle AI risk (Link)

• Elon Musk’s Neuralink gets FDA green light for 2nd patient (Link)

Today’s whisper:

^{Stop by the West Coast Craft Market at Fort Mason this Saturday (Instagram) Over 100 artists and designers will be showcasing their products!}