The US SEC has delayed the approval process for several highly anticipated Ethereum exchange-traded funds (ETFs), according to recent regulatory filings.
The delay has impacted proposals from investment firms such as VanEck, Ark Invest, Hashdex, and Grayscale, which along with Fidelity has added a staking component to its ETH ETF application, sparking debate about the future of crypto ETFs in the US. There is.
Probability of approval is low
James Seifert, a Bloomberg ETF analyst who has been closely monitoring the developments, said: announced a change From his previously cautiously optimistic outlook on the approval of an Ethereum ETF.
He said the SEC's lack of involvement on Ethereum-specific issues is in sharp contrast to the SEC's approach to Bitcoin ETFs last fall, and he believes a positive outcome could be achieved by the critical May 23 deadline. He pointed out that expectations that people would be able to do well were waning.
Similarly, Eric Balchunas recently pointed out that the absence of any bullish signals or sources that existed prior to the approval of the Bitcoin ETF greatly reduces the chances of the Ethereum ETF making a favorable decision. We estimate the probability to be 35%.
The conversation extended beyond ETF delays to the broader regulatory environment for cryptocurrencies. Some suggested that the SEC may require a court order before approving an Ethereum ETF, citing potential differences between Ethereum and Bitcoin regarding designations.
Seifert, however, disagreed with the idea that Ethereum could be classified as a security, and that this designation could fundamentally impact its regulatory treatment.
The discussion also delved into the area of potential outcomes and strategies. Seyffart speculated about the future of Grayscale's Ethereum futures product and the implications for potential legal challenges to the SEC's decision.
Investing in ETFs
Meanwhile, both Fidelity and Grayscale have amended their Ethereum ETF application forms to include a staking component.
Staking, a fundamental aspect of Ethereum's proof-of-stake (PoS) model, involves locking up digital assets to support the security and functionality of the network, allowing participation in the form of additional cryptocurrencies. provide rewards to those who
Grayscale's proposal, similar to Fidelity's, would allow ETFs to allocate a portion of their holdings to staking through selected providers, which may include affiliates. The move is aimed at exploring the potential for income generation within a regulated financial framework, with the ETF expected to receive Ether tokens as network rewards, which could be considered income for the fund. There is.
However, the additions were recently announced amid increased scrutiny from US lawmakers who have called on the SEC to halt the approval of new crypto-related ETFs due to concerns about investor risk.
As the May 23 deadline approaches, the crypto community remains on edge and waiting for further developments.
Ethereum market data
At the time of press March 20, 2024, 1:04 a.m. (UTC)Ethereum ranks second in market capitalization, and the price is under 8.43% Over the past 24 hours.The market capitalization of Ethereum is $387.35 billion The trading volume for 24 hours is $34.72 billion. Learn more about Ethereum ›
Overview of the virtual currency market
At the time of press March 20, 2024, 1:04 a.m. (UTC)the value of the entire cryptocurrency market is $2.37 trillion in 24 hour volume $189.51 billion. Bitcoin dominance is currently 52.19%. Learn more about the cryptocurrency market ›
