Ether ETFs: High Probability, Uncertain Future, Anticipates Keyrock CEO
Summary:
Keyrock CEO, Kevin de Patoul, discusses the uncertain future of Ether exchange-traded funds (ETFs) approval. Despite a probability prediction over 50%, Ether ETF's outcome is not a foregone conclusion. The future of Ether ETFs grabs crypto industry attention following Bernstein’s assessment that Ether could be the exclusive crypto gaining ETF approval this year. De Patoul anticipates obstacles similar to those that impacted the approval of Bitcoin ETFs in the US, notably the potential classification of Ether as a security by SEC Chairman Gary Gensler. Rising Ether prices and the forthcoming Dencun upgrade also contribute to the mounting excitement surrounding Ether ETFs.
The fate of Ether exchange-traded funds (ETFs) remains in the balance, according to a recent interview with Keyrock's CEO, Kevin de Patoul. He stated that although the likelihood of approval is high, exceeding the halfway mark, it is by no means a certainty. The spotlight has been on Ether ETFs in the cryptocurrency sector following predictions from Bernstein, a wealth management company, that Ether could be the sole crypto to secure an ETF this year. Bernstein predicts a 50% probability of this happening by May 2024. Both JPMorgan and Bloomberg's senior ETF analyst, Eric Balchunas, concur with this assessment while Polymarket implies a 42% probability of a May approval. On the other hand, de Patoul anticipates additional hurdles mirroring those faced during the approval process for the inaugural Bitcoin ETFs in the US, with the classification of Ether as a security by SEC Chairman Gary Gensler being a key concern. Despite his evasion on this topic during earlier congressional hearings and opposition from former SEC Division Director William Hinman back in 2018, Gensler's stance could pose a significant risk. De Patoul dismisses the notion of Ether as a security, but acknowledges the introduction of staking yield following Ethereum's switch to a proof-of-stake consensus model last year might impact the SEC's view. Interest in Ether ETFs was stoked again when Ether crossed the noteworthy $3,000 price threshold on February 20 for the first time in nearly two years. De Patoul links Ether’s price movement to enthusiasm over a probable spot ETF and the upcoming Dencun upgrade, which aims to enhance the network by increasing scalability and reducing gas fees. As per de Patoul, these improvements will enhance Ethereum’s value and therefore positively influence price.
Published At
2/23/2024 7:38:59 PM
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