SEC may approve an Ethereum ETF this week. This would be a major shift in the regulatory position. Bloomberg analysts Eric Balchunas & James Seyffart increased their odds that approval to 75%, up from 25%Citing recent talk and the SEC’s request for 19b-4 revisions filed by 10 am Tuesday. Applicants, such as major players BlackRock, Grayscale, Fidelity, have been scrambling to get in.
BlackRock has an excellent track record when it comes to the SEC. Only one ETF request was rejected by them in 2014. This ETF, BlackRock Total Return ETF had been initially rejected because of concerns regarding transparency and aligning with its Net Asset Value (NAV). In December 2023, the SEC approved Bitcoin ETFs, but a new version of the ETF was launched that addressed the SEC concerns. BlackRock has a history of successfully navigating regulatory challenges.
As deadlines on various applications approach, the SEC’s decision regarding Ethereum ETFs is eagerly awaited. Bloomberg Terminal data shared James Seyffart outlines the list of ETFs awaiting review, which includes VanEck’s VanEck 21Shares Fund, ARK 21Shares Hashdex Grayscale Invesco Galaxy Fidelity Franklin Bitwise. The applications for these ETFs have been delayed multiple times, but recent efforts to revise the filings suggest a possible breakthrough.
Grayscale, BlackRock and other applicants have updated their application. Grayscale filed a S-3 registration statement To convert its Ethereum Trust into a spot-ETF and an S-1 for a mini Ethereum ETF. BlackRock’s Nasdaq Amendment to its 19b-4 Filing proposes cash-based redemption and creation, in line with the other Ethereum ETF Applications and previously approved Bitcoin ETFS.
SEC has taken a cautious approach due to concerns about market manipulation. They also need comprehensive data regarding Ethereum. There is hope for Ethereum ETFs after the recent approval of Bitcoin ETFs following Grayscale’s victory in court and Hong Kong’s launch of Ethereum ETFs. Recent interactions between the SEC and ETF issuers were described as being one-sided. Agency staff did not provide substantive feedback, which led to speculation. potential rejections.
Ethereum is up 17% within the last 24 hour despite the challenges. Investors would be able to access Ethereum in a more regulated way if a spot Ethereum ETF were approved. This could increase market stability and liquidity. BlackRock, Fidelity and other prominent asset managers are involved in these products. This adds credibility and could help attract institutional investors.
BlackRock has a long history of getting products through regulatory approvals. While this is not a guarantee, BlackRock’s past success in overcoming hurdles suggests that the odds may be on their side. This week, the odds seem to be in their favor. Ethereum ETF greenlight It would be a major step forward for mainstream crypto integration.
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Source: cryptoslate.com