While the Securities and Exchange Commission (SEC) decision on spot Bitcoin ETFs is awaited, the cryptocurrency world is also preparing for the likely approval of a spot Ethereum ETF. The SEC has just once again postponed its decision to approve several Ethereum spot ETFs, notably those of Ark & 21Shares, Grayscale and VanEck, which have been in limbo until May 23, 2024.
SEC Pushes Back Ruling on Several Ethereum Spot ETFs
The Securities and Exchange Commission (SEC) is delaying its decision on several Ethereum spot ETFs, including those offered by Ark & 21 Shares, Grayscale and VanEck. The new date is now set for May 23, 2024.
Update: Here it is. Order delay for @ARKInvest and @21 sharing in their place #Ethereum ETF registration. Expected and due by December 26th. The deadline for these events is the end of May. https://t.co/Zs6Zsd4uKj pic.twitter.com/9u0nNiPD9O
— James Seyffart (@JSeyff) December 18, 2023
This deferral of a decision by the SEC is standard practice in the review of ETF applications.
This postponement in no way anticipates a final decision; allows ETF issuance candidates to take the necessary time to adjust their proposal and meet the legal requirements imposed by the SEC, as is currently the case with Bitcoin ETFs
👉 To understand everything – What is Bitcoin ETF (BTC)?
The Ethereum ETF is a financial instrument that, if approved by the SEC, would make it possible to invest in Ether indirectly but also easier.
Aimed at investors, businesses, banks and other financial institutions, it would provide them with a convenient way to hold ETH, avoid the administrative and technical complications of trading the 2nd most capitalized cryptocurrency on the market.
This financial instrument is designed to comply with legal and regulatory standardsenables a safer and more regulated investment in the relevant asset. Before approving such a product, the SEC seeks to ensure, among other things, that it complies with anti-money laundering and anti-terrorist financing rules.
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The Story of Cryptocurrency ETFs
In parallel with the Ethereum spot ETF, The best asset managers battle it out for the top Bitcoin ETF spot.
Although the SEC deadline for spot bitcoin ETFs is slated for mid-March 2024, the consensus of analysts estimates that it should be approved around January 10.
If this is confirmed, this would be very good news for the cryptocurrency market and the demand for Ethereum spot ETF it will more likely be approved a few months later.
👉 Discover our guide to buying Ethereum (ETH) in 2023?
As mentioned earlier, ETFs allow you to hold the assets they represent without the associated administrative and technical restrictions. These are entities like BlackRock or Grayscale, which would hold cryptocurrencies, which would guarantee the safety of funds and which would manage complex administrative procedures.like these last months of negotiations with the SEC to approve ETFs.
If these ETFs are getting so much attention, it is primarily because they could mark the beginning of a record inflow of capital into the cryptocurrency market.. In fact, many investors would have fewer restrictions on gaining exposure to the crypto market, which could create strong buying demand and push the price of Bitcoin and Ether higher.
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