In summary, the potential approval of a spot Ethereum Exchange-Traded Fund (ETF) in the United States on May 23, 2024, has generated significant excitement within the crypto community. The Depository Trust and Clearing Corporation (DTCC) has listed VanEck’s ETH ETF under the ticker symbol “ETHV,” which is a crucial step preceding final approval from the Securities and Exchange Commission (SEC). If approved, Ethereum could keep pace with Bitcoin, potentially reaching a price of $8,000. However, given the volatile nature of the crypto market and potential regulatory changes, investors are advised to exercise caution and conduct thorough research before making any investment decisions. The approval of ETH ETFs could also impact the broader altcoin market as investors diversify their portfolios, potentially leading to increased interest in other altcoins.
Is political pressure playing a role in the SEC’s consideration of spot Ether ETFs, and what implications does this have for the crypto community?
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As of May 22, Ethereum (ETH) has experienced a surge in value, with its price hovering near $3,760. This represents a notable gain of approximately 28% over the previous week.
There’s growing anticipation that the SEC will give its approval for the launch of the first Ether exchange-traded funds (ETFs) in the United States this week, fueling this market surge.
On an unexpected note, the Securities and Exchange Commission (SEC) asked Nasdaq, CBOE, and NYSE to make improvements to their proposals for listing Ether spot exchange-traded funds (ETFs) on May 20. The exchanges were required to resubmit their enhanced applications by the end of that day.
As a Bloomberg analyst, I’ve observed that Fidelity, VanEck, and ARK/21Shares were among the quick responders who recently submitted amended filings.
As a crypto investor, I’m thrilled to share some exciting news. In the past 25 minutes, no less than five Ethereum ETF hopefuls have updated their applications with the Securities and Exchange Commission (SEC). Among them are Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin. They all submitted their Amended 19b-4 forms through the Chicago Board Options Exchange (CBOE).
— James Seyffart (@JSeyff) May 21, 2024
As a researcher studying the regulatory landscape of Exchange-Traded Funds (ETFs) based on Ethereum, I can’t stress enough the importance of Form 19b-4 filings. These documents serve as crucial communication channels for proposing rule changes to the Securities and Exchange Commission (SEC). Once approved, these changes are essential steps leading to the effective operation of Ethereum spot ETFs.
After this announcement, the cost of Ether experienced a significant increase, reaching approximately 18% growth on Monday and peaking at over $3,830. At present, it hovers around $3,700.
Keep in mind that the initial application deadlines for the first batch of Ether Exchange-Traded Funds (ETFs) are coming up soon. VanEck’s submission is due on May 23, followed by ARK Invest and 21Shares on May 24.
As a crypto investor, I’m thrilled about the potential approval of these ETFs. This unexpected development is a significant victory for our industry, bringing renewed optimism and excitement to the community.
Although significant advancements have been made, there is still apprehension regarding the issue. The Securities and Exchange Commission, under the leadership of cryptocurrency critic Gary Gensler, has consistently expressed reservations about endorsing spot Bitcoin ETFs, primarily due to fears surrounding potential market manipulation.
The triumph of Grayscale Investments in court could potentially sway the SEC’s stance on approving Ether Exchange-Traded Funds (ETFs).
As a crypto investor, I understand that when it comes to launching an Exchange-Traded Fund (ETF), there’s more to do than just filing a 19b-4 with the Securities and Exchange Commission (SEC). To give potential investors a clear picture of the ETF’s purpose, strategies, and risks, I must also prepare and submit an S-1 registration statement. This document is crucial as it lays out all the essential details about my proposed ETF in a transparent and comprehensive manner, allowing the SEC to make an informed decision on whether to approve the fund for public trading.
The Securities and Exchange Commission (SEC) scrutinizes the S-1 application for an exchange-traded fund (ETF) to make certain it adheres to all regulatory standards. The time frame for SEC approval of S-1 filings is unpredictable, ranging from several weeks to many months. Once SEC approval is granted, the ETF becomes operational and can be bought and sold on financial markets.
As an analyst, I want to clarify some common misunderstandings regarding Ethereum ETFs and their approvals. Contrary to popular belief, approvals do not automatically result in immediate launches. Instead, there will be a delay of at least several days, if not weeks or even months, before the ETF sees the light of day on the market.
— James Seyffart (@JSeyff) May 21, 2024
As a crypto investor, I understand that the approval process for an Ethereum Exchange-Traded Fund (ETF) through the Securities and Exchange Commission (SEC) could take anywhere from weeks to months. Therefore, it’s essential to be patient and keep an eye on any updates regarding the S-1 filing. Eventually, once the SEC gives its approval, we can look forward to having a live Ethereum ETF in the market.
What is happening, and what are the odds?
It’s been proposed that the SEC’s about-face may stem from political influences, potentially driven by the forthcoming elections.
As a crypto investor, I’ve noticed the recent shift in Former President Trump’s stance towards cryptocurrencies. He’s made some pro-crypto statements and even hinted at his supporters to back him. At the same time, he’s been critical of President Biden’s understanding of this rapidly evolving digital asset class. From my perspective, it seems essential for crypto enthusiasts to stay informed about political figures’ views on the industry and engage in supportive actions when appropriate.
Trump now accepts crypto.
— Balaji (@balajis) May 21, 2024
As a researcher studying the intersection of politics and technology, I’ve noticed an intriguing development: the increasing role of cryptocurrencies in political campaigns, with Democrats in particular focusing on this issue to appeal to younger voters who are actively engaged in the crypto community.
It’s surprising that the Securities and Exchange Commission (SEC) might grant approval for a spot Ethereum ETF given its past stance on such matters.
However, policy is influenced by politics, and crypto has been making significant strides in the political arena over the past few months.
Perhaps, the Biden administration saw an opportunity to win over voters with a single pro-crypto statement.
— Jake Chervinsky (@jchervinsky) May 21, 2024
According to a source familiar with the Democrats’ campaign strategy, they desperately require the support of young voters. Meanwhile, Biden’s campaign stance aims to project him as an innovative octogenarian.
A week after Trump expressed support for cryptocurrencies, Biden shifted his position in response.
— borovik (@3orovik) May 22, 2024
The Chief Legal and Policy Officer of the Crypto Council for Innovation, Ji Kim, emphasized the significance of cryptocurrencies to stakeholders and their potential influence on elections. He pointed out that crypto users could emerge as a significant voting block that could sway election outcomes.
During the fall of 2023, the SEC’s green light for Ether futures ETFs from companies like ProShares, VanEck, and Bitwise might impact their decision regarding spot Ether ETFs. The approval of these futures ETFs could suggest a readiness to consider spot ETFs, but each application is assessed individually based on its unique merits.
As a market analyst, I’ve been keeping a close eye on the latest developments. Recently, I’ve noticed an uptick in optimism regarding the approval of a spot Ethereum ETF. Bloomberg ETF analyst Eric Balchunas has even increased his estimation of the likelihood from 25% to 75%. This shift comes after rumors surfaced suggesting a potential SEC reversal on their stance towards these types of funds.
Based on recent information, JSeyff and I have raised our estimation of the likelihood of Ether ETF approval from 25% to 75%. There are indications that the Securities and Exchange Commission (SEC) might be reconsidering their stance on this contentious issue. As a result, various parties, including ourselves, are actively working to prepare for potential approval.
— Eric Balchunas (@EricBalchunas) May 20, 2024
According to Geoff Kendrick, the Head of FX Research and Digital Assets Research at Standard Chartered Bank, there is a strong likelihood of approval for the pending matter, with an estimated probability ranging between 80% and 90%.
Following these new developments, the crypto betting platform Polymarket experienced a significant change in the likelihood of ETF approval by May 31st. The initial odds were set at a 10% chance, but they surged to approximately 75% within hours and are now hovering around 69%.
As an analyst, I would express it this way: If the approval is granted, bettors on our platform stand to gain substantial profits. The potential return on investment for a “yes” bet is approximately 60%, while going against approval could yield over 165% returns.
Could Ethereum ETFs put up a fight for BTC ETFs?
The prospect of introducing exchange-traded funds (ETFs) based on Ethereum’s spot market has the power to influence both Bitcoin ETFs and the overall altcoin sector substantially.
As a crypto investor, I’ve witnessed an astonishing growth in the world of spot Bitcoin Exchange-Traded Funds (ETFs) over the past four months. These funds have managed to amass an impressive $58 billion in assets under management (AUM). Heavyweights like Grayscale and BlackRock are spearheading this success story. However, this achievement raises intriguing questions about how Ethereum ETFs might fare in comparison to their Bitcoin counterparts.
According to Balchunas, the introduction of Ether ETFs following Bitcoin ETFs resembles the sequence of Sister Hazel and Nirvana performing at a concert.
It’s possible that my analogy of Ether ETFs following Bitcoin ETFs being like Sister Hazel performing after Nirvahan may have struck a nerve with some people. While I acknowledge that this comparison could be seen as harsh, I maintain my belief that Ether ETFs are expected to attract around 10-15% of the assets of Bitcoin ETFs, despite James’ influence.
— Eric Balchunas (@EricBalchunas) May 21, 2024
As a researcher studying the evolution of cryptocurrency exchange-traded funds (ETFs), I can make this analogy: Nirvana served as the pioneer, debuting before others with a significant influence and high expectations set. Bitcoin ETFs represent Nirvana in this scenario. In contrast, Sister Hazel came onto the scene later, symbolizing Ether ETFs, and may face challenges in matching the initial impact and setting the same standard that Bitcoin ETFs established.
According to Balchunas’ analysis, Ethereum ETFs could potentially attract between 10-15% of the assets currently managed by Bitcoin ETFs. Although Bitcoin ETFs are expected to maintain their leading position, some investors may shift their funds from Bitcoin to Ethereum, opening up opportunities for Ethereum ETFs to gain a foothold in the market.
The revelation of potential Ethereum Exchange-Traded Funds (ETFs) has brought about significant consequences, with a shift of approximately $100 billion in the crypto market capitalization post-announcement. This shift implies that Ethereum ETFs might hold more weight than Balchunas’ initial assessment of “small potatoes.”
“The introduction of Ethereum ETFs might lead to wider impacts on the altcoin sector as well. As investors allocate funds towards these new ETFs, capital could potentially shift from Bitcoin to the altcoin market, benefiting various digital currencies.”
The degree to which ETH exchange-traded funds (ETFs) influence the market will hinge upon their performance and ability to capture a significant portion of the investor base now served by Bitcoin ETFs.
As a crypto investor, I’d interpret Standard Chartered’s analysis this way: If spot Ethereum Exchange-Traded Funds (ETFs) are given the green light, a substantial inflow of capital could be attracted towards these ETFs. The bank estimates that within the first year post-approval, anywhere between 2.39 to 9.15 million Ethereum tokens might be invested, equivalent to an investment range of around $15 billion to $45 billion in US Dollars.
Based on current projections, there appears to be a significant appetite for ether ETFs, reminiscent of the market’s response to bitcoin. Nevertheless, it’s important to note that uncertainty reigns at present, and nothing is definitively set in stone.
What to expect next?
Excited about the possibility of an approved spot Ethereum ETF in the US by May 23rd? If so, you might be interested to know that VanEck’s ETF has already been added to the Depository Trust and Clearing Corporation (DTCC) list under the ticker symbol “ETHV.” This means that if the ETF is indeed approved, investors can look forward to buying shares under this symbol. Let’s keep our fingers crossed!
As a researcher studying the intricacies of the American financial market infrastructure, I can’t stress enough the importance of the Depository Trust & Clearing Corporation (DTCC). This significant entity offers essential services such as clearing, settlement, and transaction reporting. Obtaining a listing on DTCC is a vital prerequisite for securing final approval from the Securities and Exchange Commission (SEC).
As a researcher investigating the current status of exchange-traded funds (ETFs) related to Ethereum on the Depository Trust & Clearing Corporation (DTCC) platform, I’ve come across an interesting observation. Although VanEck’s Ether ETF is labeled as inactive on the DTCC website, meaning it cannot be processed until regulatory approvals are obtained, it’s important to note that this isn’t a first for Ethereum ETFs on the platform. In fact, Franklin Templeton’s spot Ethereum ETF was listed there just a month prior.
If approved this week, Ether exchange-traded funds (ETFs) could follow Bitcoin’s lead, maintaining a price difference of roughly 5.4% between the two throughout 2024, according to Standard Chartered’s prediction.
As a crypto investor, I’d interpret Geoff Kendrick’s statement this way: Based on my analysis and Standard Chartered Bank’s forecast, Bitcoin is expected to hit $150,000 by the end of 2024. If that holds true, then Ether could potentially be valued around $8,000.
As a crypto investor, I’m excited about the possibility of spot Ether ETF approval. This development could bring numerous benefits to the market. However, it’s important to remember that the crypto world is inherently volatile and subject to regulatory changes. Therefore, I urge caution and encourage thorough research before making any investment decisions.
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2024-05-23 16:38