Bittime - In the journey towards greater financial inclusion, financial technology platforms like Umoja play a crucial role in bringing about positive change in the global financial ecosystem. One important aspect of this evolution is the development of Exchange-Traded Funds (ETFs), especially those linked to crypto assets such as Ethereum (Ether). However, the delay in approval of Ether ETFs highlights some of the challenges faced by the industry.
Delay in Approval of Ether ETFs
According to Umoja CEO, Robby Greenfield, delays in approval of Ether ETFs could extend past the final deadline in May. The reason behind this delay is the lack of internal strategy by large financial institutions to prepare themselves for approval from regulators.
In a dynamic and uncertain environment, companies such as BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton are competing for approval for Ether ETFs.
However, the United States Securities and Exchange Commission (SEC) has postponed a decision regarding Hashdex and ARK 21Shares' Ether ETF on March 19. Both ETF applications have a final deadline for decisions at the end of May.
James Seyffart, an ETF analyst from Bloomberg, also estimates that approval for the current Ether ETF will likely be rejected by the end of May. Still, hope remains that approval is only a matter of time.
Check Today's Crypto Market:
Factors Inhibiting Approval of Ether ETFs
It should be noted that the challenges in creating an institutional strategy for an Ether ETF are a result of the decentralized nature of cryptocurrencies like Ether. However, despite these challenges, the prospects for broader Ether ETF approval remain wide open.
The United States Securities and Exchange Commission (SEC) is expected to make a decision regarding VanEck's application on May 23, ARK 21Shares on May 24, Hashdex on May 30, Grayscale on June 18, and Invesco on July 5. Fidelity and BlackRock's applications also have deadlines of August 3 and August 7, respectively.
Beyond the debate over Ether ETFs, another challenge facing the industry is the reluctance of large institutions to invest in decentralized finance (DeFi). One of the inhibiting factors is the lack of adequate infrastructure. Greenfield notes that this also impacts traditional retail investor participation.
Also Read: What is a Crypto ETF and What are its Advantages?
Approval Delay Solution
However, through innovative steps, such as closing an additional $2 million in seed funding to expand retail access to asset management strategies, Umoja continues to play a critical role in promoting financial inclusion. Through efforts like this, it is hoped that retail investors will become increasingly involved in asset management.
According to estimates from the World Economic Forum, retail investors are expected to account for 61% of total assets under management globally by 2030, up from 52% in 2021. This shows the importance of steps to expand access to financial products and services for all society.
Also Read: Comparing ETFs and Mutual Funds, Which is Right for You?
Conclusion
The delay in approval of Ether ETFs highlights the challenges and complexities faced in integrating crypto assets into the traditional financial system. Nonetheless, the steps taken by financial technology platforms such as Umoja to expand access and participation in financial services demonstrate a commitment to realizing broader financial inclusion.
Through innovative approaches and collaboration between industry players and regulators, it is hoped that these challenges can be overcome, opening the door to greater growth and adoption of crypto assets in the future.
Additionally, it is important to remember that this process is part of a larger evolution in the global financial system, so that financial inclusion and access to financial services are a key focus.
By continuing to strengthen infrastructure and improve financial literacy across all levels of society, we can create a more inclusive and sustainable environment, where every individual has the opportunity to achieve financial success.
Check Crypto Prices Today:
How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
Why Does Ethereum (ETH) Price Continue to Increase?
Guide on How to Check Transactions on Ethereum
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.