Discover an Ethereum ETF approved by the SEC after a surprising change in direction.
After a delay, the US SEC authorized the spot ETH ETF application on Thursday. Ethereum may hit a record high like Bitcoin after the ETF certification.
$ETH After weeks of calm, the SEC permitted the filing of spot ETH ETF 19b-4s on Thursday. Thursday. The decision follows weeks of SEC reluctance toward ETF applications.
Before the ETF's debut, the SEC must approve the S-1 application, which may take weeks. Many anticipate the SEC to allow spot ETH ETFs after authorizing spot Bitcoin ETFs in January. However, the SEC purportedly ignored the issuer and repeatedly delayed the application. Unlike spot Bitcoin ETFs, where the SEC frequently deals with issuers, its silence has caused many to worry that the SEC will not approve a spot ETH ETF. Thus, Bloomberg analysts Eric Balchunas and James Seyffart estimate a 25% chance of ETF approval. The SEC is also considering labeling ETH as a security after investigating Ethereum-related entities, according to Consensys court documents.
The SEC suddenly began contacting issuers on Monday, asking exchanges to submit revised 19b-4s filings. After Donald Trump's pro-crypto speech, Balchunas and Seyffart increased their approval odds to 75%, calling the move political and possibly pushed by US President Joe Biden.
Van Eck Head of Digital Assets Matthew Sigel argues that profits across staking protocols will increase when ETH exits the ecosystem into ETFs. This has the potential to affect the security of the Ethereum ecosystem.
Some experts predict ETH ETF spot inflows will be minimal compared to Bitcoin as investors do not want to lose out on staking rewards. CCData recently examined this view:“Hypothetically, if you opened a 1000 ETH position on January 1, 2023 with an ETF provider, instead of holding real Ether, which generates staking rewards, you would miss out on profits of over $200,000.”$
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