In the US, there is a buildup of applications for approval of exchange-traded funds (ETFs) focused on Ethereum. The American regulator, the Securities and Exchange Commission (SEC), has postponed the decision deadline on these products several times, aligning with market expectations.
Recently, the SEC delayed the decision on BlackRock's ETF approval, which would track the price development of Ethereum. Now, the regulator has until May 23 to decide on a similar request from VanEck. This move comes after the approval of several bitcoin spot ETFs in January, including a product from BlackRock that attracted a significant volume of assets.
Ethereum ETF: Inevitable Market Step
There is optimism prevailing that the SEC will approve an Ethereum ETF, given the growing demand for cryptocurrency products. "It's just a matter of time before we get to Ethereum," comments Hector McNeil from HANetf, pointing out that Ethereum should meet all the necessary requirements after the approval of bitcoin ETFs.
Europe Leads with ETH ETP
Europe is a step ahead in the development of cryptocurrency investment products. Various exchange-traded products (ETPs) offering exposure to Ethereum and bitcoin already exist in the European market. Significant issuers include CoinShares, 21Shares, and others, with products on the market for many years.
Difference Between Crypto ETP and ETF
Due to specific regulations in Europe, the term "ETP" is used for cryptocurrency investment products instead of "ETF." This distinguishes products focused on individual assets or small groups of assets from traditional ETFs.
ETH Futures in the US
Futures contracts on Ethereum are already regulated and traded in the US, providing investors with the opportunity to speculate on the price of this cryptocurrency. This factor may support the argument for the approval of an ETH ETF.
Challenges for ETH ETFs in Betting Rewards
Despite interest in products offering betting rewards from Ethereum, their approval in the US may be more challenging than in Europe, where such products are already available.
Why Does the SEC Delay Decisions?
The SEC's postponement of decisions on cryptocurrency ETFs signals a cautious approach while carefully considering all potential risks and regulatory issues associated with these products. The approval of a bitcoin ETF took more than ten years, illustrating how lengthy and complex this process can be.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
