Differences Between Ethereum and Bitcoin ETF Approvals Stir Debate Among Crypto World
Summary:
The U.S. Securities and Exchange Commission (SEC) approved a spot Ether (ETH) exchange-traded fund (ETF), although its approval method varied from the spot Bitcoin ETF in January. The ETH ETF approval was oversaw by the Trading and Markets Division of the SEC. This variance in approval routes has triggered debate in the crypto world. Furthermore, unlike the 11 Bitcoin ETFs that started trading immediately after their approval, the ETH ETF might face weeks or even months delay before its debut on the stock exchange, as the ETF filers have yet to receive the S-1 SEC registration approval.
On May 23, the U.S. Securities and Exchange Commission (SEC) gave the green light to a spot Ether (ETH) exchange-traded fund (ETF), though the approval method differed slightly from the spot Bitcoin (BTC) ETF endorsement back in January. The green light for the Bitcoin ETF involved a vote by a five-member panel, including the head of the SEC, Gary Gensler. In contrast, the acceptance of the Ether ETF was overseen by the Trading and Markets Division within the organization.
The SEC confirmed the 19b-4 form for BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton, observing official protocol without providing additional comment. The official document stated, "For the Commission, by the Division of Trading and Markets, under delegated authority."
A noticeable discrepancy in the approval routes for these two cryptocurrency ETFs has aroused curiosity within the crypto world. However, Bloomberg ETF analyst James Seyffart expressed this as standard, noting that many approvals follow the same pattern. In his view, the impact of calling for an official vote on every decision would create an unwieldy situation. Seyffart also expressed his wish to see the political division.
Despite Seyffart's analysis, some remain unconvinced. An anonymous user has pointed out that a commissioner could dispute the result within the next ten days. They speculated that the voting process could have been concealed under a delegated authority to avoid political scrutiny.
Others have suggested that the SEC's ruling was driven by an array of factors, from political pressure and upcoming elections to the introduction of Environmental, Social, and Governance rules.
Another critical distinction between the two approvals is the timeframe between endorsement and trading. Unlike the Bitcoin ETFs, which were traded the day following their approval after receiving S1 clearance, it could be weeks or even months before the ETH ETF starts trading. The delay is attributed to the ETF filers still awaiting clearance from the S-1 SEC registration.
Published At
5/24/2024 12:57:28 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.