Bittime – It is reported that Grayscale is optimistic for the approval of an Ethereum ETF by the SEC. The cryptocurrency world is once again abuzz with discussions regarding the approval ofthe United States Securities and Exchange Commission (SEC) for the Ethereum ETF (Exchange Traded Fund).
Grayscale, a leading digital investment management firm, expressed confidence that the product would get the green light despite concerns about a lack of interaction from the SEC.
Grayscale Argument: Ethereum ETF Case Similar to Bitcoin ETF?
Grayscale Chief Legal Officer Craig Salm argued that the Ethereum ETF filing is on solid ground, similar to the SEC's approval of a Bitcoin ETF in the past.
Through posts on social media, Salm stated that many issues that had previously been debated in the Bitcoin ETF application , such as unit creation and redemption procedures, cash and asset models, asset protection, loss prevention and storage, had been resolved.
"In many ways, the SEC has been involved in discussions with Bitcoin ETF proponents. This time, the proponents have fewer points to discuss with the regulator," Salm said, stressing that the Ethereum ETF case is similar and should be approved on a similar basis .
However, there are fundamental differences between ETF applications from various parties. Some proponents, such as Ark 21Shares, Fidelity, and Franklin Templeton, plan to incorporate elements of staking (the process of locking up crypto assets to validate transactions) into their products. This will certainly raise additional discussion points with the SEC regarding staking regulations.
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Concerns "Lack of Interaction" from SEC with Ethereum ETF Proponents
Bloomberg ETF analysts Eric Balchunas and James Seyffart recently voiced their concerns over the SEC's lack of interaction with Ethereum ETF proponents. As a result, they lowered their approval forecast for the product in May to just 25%.
"This is a pessimistic 25% optimism," Balchunas wrote in his post, asserting that the lack of interaction from the SEC appeared "intentional" rather than mere delay.
Ethereum ETF: High Correlation with ETF Futures
In the midst of these concerns, Salm sees the SEC's approval of the Ether Futures ETF (an ETF based on the Ether crypto asset futures contract ) as a positive signal. The regulation of such products under the commodity futures umbrella provides a strong argument for the approval of a spot Ethereum ETF, given the high correlation between futures and spot prices of the underlying assets.
Similar views were expressed by Paul Grewal, Coinbase's Chief Legal Officer, and Brian Quintenz, former Commodity Futures Trading Commission (CFTC) commissioner.
ETH (Ethereum) Price Today
Source: Bittime.com
On March 26, 2024, the price of ETH (Ethereum) was at $3,625 per coin, up 5.32% in the last 24 hours.
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Fierce Competition for Ethereum ETF Applicants
A number of big names in the financial industry are joining the competition to apply for an Ethereum ETF. BlackRock , VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex are among those awaiting the SEC's decision.
For investors, May 23 2024 is a crucial marker. The reason is, the SEC is required to provide a final decision on VanEck's filing on that date. Analysts predict that the fate of the other claimants will be decided simultaneously on the same day.
Conclusion
Grayscale, as one of the leading proponents, exuded high optimism towards the SEC's approval of an Ethereum ETF. Their argument is based on regulatory similarities to Bitcoin ETFs and high correlation between futures and spot products. However, concerns about the lack of interaction with regulators are a negative sentiment that needs to be monitored closely. Investors certainly hope that their wait will soon be answered next May.
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How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethereum (ETH) is available on Bittime with the market pair ETH/IDR . To be able to buy ETH/IDR at 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 the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor price chart movements for Ethereum (ETH), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation 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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