Spot Ether ETFs Approved: Industry Experts Discuss Implications and Market Projections
Summary:
Following the approval of spot Ether exchange-traded funds (ETFs) by the U.S. SEC, experts have discussed potential outcomes and implications. Predictions include a similar trajectory to Bitcoin ETFs, though with less volume. Industry leaders foresee a strong investment case for Ethereum and expect a shift in global sentiments towards crypto. Despite the progress, legal experts remain cautious about the SEC's perspective on Ethereum as a commodity.
After green-lighting spot Ether exchange-traded funds (ETFs), industry specialists joined a discussion on X Spaces, hosted by Cointelegraph. This move was solidified on May 23rd, with the Securities and Exchange Commission (SEC) of the U.S. authorizing 19b-4 filings by prospective Ether ETF parties like VanEck, Fidelity, BlackRock, Grayscale, Invesco Galaxy, ARK 21Shares, Bitwise and Franklin Templeton.
In the aftermath of this authorization, an X space conversation was led by Gareth Jenkinson, Cointelegraph's Managing Editor, engaging notable figures such as Bloomberg's Eric Balchunas, Matthew Sigel, who helms digital asset research at VanEck, along with Consensys' head of global regulatory issues, Bill Hughes and Yat Siu, co-founder of Animoca Brands. Their focus was on the matters arising from the spot Ether ETF approval.
Reflecting on post-approval trajectory, Balchunas predicts an analogous outcome with the spot Bitcoin ETFs. According to him, it would resemble a mirrored “competition among identical contenders” with the usual issuers launching simultaneously. On the other hand, he voiced his expectation of the ETH ETFs carrying less volume than the Bitcoin equivalents, estimating powers of 10 less. Bets are on unique strategies from traders, such as shorting the ETF while buying Ether for staking.
Meanwhile, Sigel disclosed they are poised to present a “strong investment case” for Ethereum and are eclectic in aiming for a perfect blend of Bitcoin and Ethereum. He hinted at the release of their deep-study analysis soon. Addressing prospective tech and equity investors, Sigel describes Ethereum’s latent “leapfrog DApp ecosystem” and its intrinsic value.
In other news, Siu, also an advocate for Web3 development with the Hong Kong government, shared his optimism about the U.S. stepping up its game in the crypto universe and Web3. The leap came on April 15th when its SFC approved the first spot BTC and ETH ETFs. This, alongside the U.S.’s approval, seems to incite more jurisdictions into considering their crypto-based ETFs, according to Siu.
As jurisdictions globally gain interest in crypto ETFs, Siu reckons the U.S. would not want to be on the sidelines. Hence, he foresees interesting occurrences within the U.S, as sentiment shifts.
On a legal note, the SEC hasn’t outrightly pegged ETH as a commodity. However, Hughes, a lawyer at Consensys, interprets the spot ETF approvals as a tacit admission of ETH being such. Despite the celebration of the ETF approval as a win for cryptocurrency, Hughes doubts the SEC's likelihood of adopting a liberal stance on crypto-related matters. Yet, the lawyer indicates this could spark controversy around the legal theories earlier leveraged by the SEC to justify enforcement moves.
Published At
5/27/2024 1:56:06 PM
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