Bittime - The crypto industry is abuzz with debate regarding the prospects for approval of an Ether (ETH)-based Exchange-Traded Fund (ETF). This follows the approval of several Bitcoin (BTC) ETFs in the United States. John Lo, Managing Partner at Recharge Capital, a leading digital asset investment firm, gave a surprising view.
Ether ETF Approval Challenges
Lo predicts that the United States Securities and Exchange Commission (SEC) will apply stricter scrutiny to all upcoming crypto-based ETF filings, especially Ether ETFs. According to him, the previous Bitcoin ETF approval was a bit "forced" by the SEC to approve it because of the case with Grayscale.
Lo said that scrutiny of crypto ETFs continues to increase. It could be said that the SEC was forced to approve a Bitcoin ETF because of the case with Grayscale. This was also considered a big defeat for the SEC internally.
Lo's statement is certainly less than encouraging news for investors who are waiting for the Ether ETF. Several well-known investment companies, such as BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton are known to be submitting Ether ETF applications to the SEC.
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SEC Decision Schedule and Ether ETF Absence Alternatives
The SEC has a deadline to decide on the approval of Ether ETFs from these various companies. The good news is that decisions on several applications will be issued soon, including:
- VanEck: May 23, 2024
- ARK 21Shares: May 24, 2024
- Hashdex: May 30, 2024
Meanwhile, decisions on applications from other companies will follow in the following month. However, Lo believes that Ethereum will survive and grow rapidly even without the Ether ETF. According to him, the innovation and improvements to the Ethereum network that have occurred recently are supporting factors.
Also Read: What is a Crypto ETF and What are its Advantages?
Other Challenges in the Crypto Ecosystem: DeFi and User Experience
Apart from the debate regarding ETFs, another challenge facing the crypto ecosystem is user experience in the realm of Decentralized Finance (DeFi). A lack of focus on user experience (UX) often makes DeFi difficult to use, especially for novice crypto users. Lo argues that this is one of the biggest obstacles hindering financial institutions' participation in DeFi.
In addition to UX, high user acquisition costs, reaching $10 to $12 or even more per user, are also a problem for the still-developing DeFi industry. Not many startups or protocols can afford this. This limits the overall number of DeFi users.
Also Read: What is DeFi in Cryptocurrency?
Ethereum as a Hub for DeFi Activity
Despite facing various challenges, Ethereum is currently still at the center of DeFi activity. Total value locked (TVL) on the Ethereum network increased by 80.3% over the past year, reaching $51 billion as of March 18, 2024 according to DefiLlama. Apart from that, based on Etherscan data, the number of unique wallet addresses on the Ethereum network also grew by 21.6% to 115,934 over the last year.
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The Future of Ether ETFs
The future of Ether ETFs in the United States remains uncertain. Close scrutiny from the SEC could be a major barrier to Ether ETF approval. However, regardless of whether there are ETFs or not, the Ethereum ecosystem as a whole is believed to continue to grow rapidly. Players in the crypto ecosystem, especially in the DeFi field, need to continue to innovate and improve the user experience to attract more investors and users, both institutional and retail.
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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.
Also Read:
Bitcoin ETF and Grayscale's GBTC Trust, What's the Difference?
Ethereum ETF Proposal Analysis: Expectations Drop by 30%?
Ethereum ETF: SEC Delays Decision from BlackRock and Fidelity
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.
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