In
a
landmark
decision,
the
US
Securities
and
Exchange
Commission
(SEC)
has
approved
the
launch
of
spot
Ethereum
exchange-traded
funds
(ETFs),
paving
the
way
for
institutional
investors
to
gain
direct
exposure
to
the
world’s
second-largest
cryptocurrency.
TLDR
The
SEC’s
approval
of
Ethereum
ETFs
is
expected
to
bring
a
substantial
influx
of
institutional
capital
into
the
Ethereum
market.
Geoff
Kendrick,
Head
of
Digital
Assets
Research
at
Standard
Chartered,
predicts
inflows
of
$15
to
$45
billion
in
the
first
12
months
following
the
launch
of
these
ETFs.
This
increased
institutional
participation
could
potentially
drive
up
the
price
of
Ethereum
and
further
solidify
its
position
as
a
leading
digital
asset.
@EricBalchunas
and
I
cant
see
it
on
the
front
facing
website
yet
but
Phoenix
is
always
right
in
my
experience.https://t.co/xI37RVXqRo
—
James
Seyffart
(@JSeyff)May
23,
2024
However,
despite
the
SEC’s
approval,
spot
Ethereum
ETFs
likely
won’t
begin
trading
until
July
or
August,
according
to
a
report
by
Galaxy
Digital.
The
delay
is
attributed
to
the
need
for
further
regulatory
approvals
and
the
funds’
greater
risk
profiles
compared
to
spot
Bitcoin
ETFs.
The
process
for
approving
the
funds
and
listing
them
on
trading
platforms
could
also
take
longer
due
to
the
variety
of
decentralized
applications
(dapps)
built
atop
the
Ethereum
network,
which
may
require
additional
disclosures.
Several
prominent
issuers
have
submitted
applications
for
Ethereum
ETFs,
including
VanEck,
Fidelity,
Franklin,
Grayscale,
Bitwise,
ARK
Invest
&
21Shares,
Invesco
&
Galaxy,
and
BlackRock’s
iShares
Ethereum
Trust.
These
ETFs
are
proposed
for
listing
on
Nasdaq,
NYSE
Arca,
and
Cboe
BZX
Exchange.
To
address
SEC
concerns,
potential
issuers
have
updated
their
filings
to
confirm
that
they
will
not
stake
ETH
for
yield,
a
practice
that
has
drawn
scrutiny
from
regulators.
The
approval
of
Ethereum
ETFs
comes
amid
a
broader
shift
in
the
regulatory
environment
for
cryptocurrencies
in
the
US.
Earlier
this
week,
the
House
of
Representatives
passed
the
FIT21
crypto
bill,
which
aims
to
establish
a
comprehensive
regulatory
framework
for
digital
assets.
The
passage
of
this
bill,
along
with
the
SEC’s
approval
of
Ethereum
ETFs,
suggests
a
change
in
the
Biden
Administration’s
stance
on
crypto,
following
former
President
Trump’s
pledge
to
support
the
crypto
industry.
The
crypto
community
has
been
monitoring
the
developments
surrounding
Ethereum
ETFs,
with
speculation
about
their
approval
intensifying
in
recent
weeks.
Bloomberg
analysts
Eric
Balchunas
and
James
Seyffart
had
increased
the
odds
of
a
spot
Ethereum
ETF
being
approved
this
month
from
25%
to
75%,
further
fueling
market
anticipation.
The
approval
of
spot
Ethereum
ETFs
marks
a
another
big
milestone
in
the
ongoing
evolution
of
the
cryptocurrency
industry.
After
a
relentless
onslaught
from
the
regulators,
including
operation
chokepoint
2.0
&
Gary
Gensler
and
Elizabeth
Warren’s
personal
anti-crypto
crusade,
it
seems
like
finally
the
tide
is
turning
in
our
favor.
2024
is
shaping
up
to
be
one
of
the
biggest
years
in
history
for
crypto.
Let’s
go!
Go to Source
Author: Oliver Dale
