#Write2earn #SEC Approves Spot Ethereum ETFs from Major Players, Marking a New Era in Crypto Investing
$ETH #ethereum #ethereumETF

The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum ETFs from major players like BlackRock, Fidelity, and Grayscale, marking a significant shift in crypto investment options.

Overview of the Approval

On May 23, 2024, the SEC gave the green light to 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise through an omnibus order. This approval follows the recent introduction of spot Bitcoin ETFs in January, highlighting growing acceptance of digital asset investment products in the U.S.

Details of the Process

The approved ETFs will be listed on three major exchanges: CBOE, NYSE ARCA, and NASDAQ, broadening Ethereum's accessibility to investors. Despite this progress, trading can only commence once the issuers receive approval for their S-1 registration statements. While this process can take a few weeks, it has historically taken up to three months.

Political Influence and Market Reactions

The SEC's decision came unexpectedly, especially given their recent lack of engagement with issuers. Political pressure from House lawmakers, including Majority Whip Tom Emmer and NJ Democrat Josh Gottheimer, may have influenced the rapid approval. They urged the SEC to approve the ETFs to align with the agency's recent approval of spot Bitcoin ETFs.

Insiders suggest that some parts of the SEC were surprised by the swift approval. Market analysts like Bloomberg’s Eric Balchunas estimate that Ethereum ETFs could attract 10-15% of the investment expected for Bitcoin ETFs, potentially garnering $5-$8 billion in the first few years.

Next Steps and Market Outlook

Issuers are now focused on obtaining S-1 registration approval, which is essential for trading to begin. Conversations between the SEC and issuers have started, but the exact timeline for approval remains uncertain.

#Write2earn #ETHEREUM ETF REJECTION EXPECTED, BUT OPTIMISM REMAINS FOR FUTURE APPROVAL
#ethereumETF #ether #eth $ETH

Despite the market expecting the first batch of Ethereum ETFs to be rejected, there's still hope for approval next year, according to a fund manager.

Early Monday, the crypto market was fairly quiet. Bitcoin (BTC), the largest cryptocurrency by market value, was steady at $67,156, and Ethereum (ETH) was trading at $3,127. This comes after a week of positive movement driven by optimism over a potential U.S. interest rate cut and a stock market rally.
Things might heat up soon with upcoming decisions on the first Ethereum exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) is set to make decisions on VanEck's Ethereum ETF on May 23 and the Ark/21 Shares ETF on May 24. Additionally, Nvidia's earnings report is expected.

March Zheng, managing partner at Bizantine Capital, mentioned in an interview that while the market is almost certain about a rejection, there's still room for optimism. He said, "We might find some positives in the delay, which could hint at a likely approval of Ethereum ETFs next year. The removal of staking elements by applicants reclassifies ETH as commodities, supported by the CFTC, paving a significant way forward."

Currently, Polymarket estimates a 10% chance of an Ethereum ETF being approved by May 31, a 13% chance by June 30, and a 28% chance by the end of the year. Recently, Coinbase analyst David Han suggested that the market might be "underestimating the timing and likelihood of a potential approval."

Zheng also noted that positive news about Ethereum ETFs could boost trading sentiment for BASE, a Layer-2 network. BASE's native token has dropped nearly 25% in the past two weeks.