US Securities and Exchange Commission has approved The first Ethereum ETFs mark a major milestone in the cryptocurrency industry. Asset managers, such as Grayscale Fidelity Bitwise can now launch ETFs directly tracking the Ethereum price.ETH).
CryptoSlate’s data shows that Ethereum rose by 2% in response to the news, and it was currently trading at $3990 as of time of publication.
It follows an extensive and rigorous market study. Craig Salm was Grayscale’s Chief Legal officer. highlighted The SEC has already dealt with key issues when it approved spot Bitcoin ETFs. These are also applicable to Ethereum ETFS. This includes creation and redemption procedures, cash or in-kind transaction concerns, and the custody of funds. Salm emphasized the SEC’s previous engagement with Bitcoin ETFs paved the way for Ethereum ETFs. Salm noted the strong relationship between ETH spot and futures prices, which was a powerful factor in approval.
After a long period, the SEC has finally made a decision. uncertainty You can also find out more about the following: skepticism Market analysts. Bloomberg analyst Eric Balchunas estimated that the Bitcoin ETF would be approved by the SEC on May 23 based on the SEC’s inaction compared with the Bitcoin ETF process. Crypto supporters were encouraged by the recent approvals of Hong Kong ETH ETFs, spot Bitcoin ETFs, and the crypto wins that Congress has achieved despite Gary Gensler taking over the SEC.
SEC included in the approval process a period for public comments, where it sought input on the various ETFs proposed, such as the custodianship, redemption and creation models and sponsorship fees. The SEC encouraged feedback by US organizations and citizens during this phase, similar to the way it approached spot Bitcoin ETFs.
It is anticipated that the approval of spot Ethereum-based ETFs will have an impact on digital assets. Hong Fang is the president of OKX crypto exchange. noted While Ethereum’s prices have risen in 2018, they’ve lagged behind Bitcoin, likely due to the market’s anticipation of SEC’s decisions. Investor confidence is expected to increase and market liquidity will also be increased by the approval.
Many issuers have filed applications Coinbase Custody is the custodian. Bitwise’s analyses showed a high correlation between the CME ETH Futures Market and the ETH Spot market. This was a crucial factor to meet SEC requirements for monitoring potential market manipulation.
Even though the SEC approach was a positive one, industry insiders still expressed their concerns. The SEC’s staff did not provide substantive feedback on proposals, according to participants in meetings held recently. The SEC approved spot Bitcoin ETFs after a detailed discussion.
This approval comes as Ethereum is still under regulatory review, whether it’s classified as a stock or commodity. According to reports, the SEC was investigating Ethereum’s regulatory classification. This uncertainty added uncertainty in the approval prospects. Today’s ruling indicates that Ethereum is a good choice. financial Ethereum as a possible commodity.
The decision is an important milestone in the industry of cryptoassets, and it reflects a growing interest. financial Traditional investment firms are introducing new products. Market participants will be closely monitoring the impact and performance of the newly approved ETFs as the market reacts.
Ethereum Market Data
The time of the press On May 23, 2024, 10:20 PM UTC 23, 2024, Ethereum It is the second largest company in terms of market capitalization and its price is Avail of our discounts 2.97% Over the last 24 hours. Ethereum is valued at 461.12 Billion Dollars With a daily trading volume of $31.29 billion. Learn more about Ethereum ›
Crypto Market Overview
The time of the press On May 23, 2024, 10:20 PM UTC 23, 2024The total market value of crypto is at 2.53 trillion dollars A 24-hour volume is $332 billion. Bitcoin dominates the market at 52.57%. Learn more about the crypto market ›
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Source: cryptoslate.com