Welcome to HODL FM. The first publication to shoulder the weight of the crypto industry for posterity to know what happened in 2024.
Our subject for today is the continued delay in approving an Ethereum ETF.
If the SEC were to save its life by writing a book about procrastination, it would turn out a bestseller. Unless they decided to postpone that too, and why not? The commission has already become an old hand at procrastination. The Securities and Exchanges Commission deferred the decision to approve Grayscale’s Ethereum ETF application in November, and now it happened once again in a new report that echoes the SEC’s past postponements.
The commission seems to say, ‘For now invest in patience, and maybe one day we’ll decide.’ And if that is the case, perhaps we need an ‘ETF for ETF delays’ so the patient ones like us can invest.
Besides, whose patience is more compelling?
- A currency jockey* – Who keeps it old school with the financial markets to risk it all on national currencies.
OR
- A hodler who kicks it with HODL.fm, riding the web3 wave like an underground extreme sports cyclist who just got wings from a can of redbull.
Chances of an ETF Approval for Ethereum Went Down from 70% to 35%
The decision by the SEC has not come as a surprise to many since the apprehension began growing several weeks ago after a senior analyst said the chances of an ETF approval by May had gone down by 50%.
However, the SEC’s new document announcing the postponement mentions its new deadline as May 30, 2024. To quote the document filed on Friday, “The proposed rule change was published for comment in the Federal Register on October 3, 2023.9 The 180th day after publication of the proposed rule change is March 31, 2024. The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days.”
Therefore, Grayscale’s September application will have to wait until the end of May to get a decision about the approval or disapproval of its Futures Trust Ethereum ETF.
Futures and Spots Ethereum ETF
Hey! Breathe in, breathe out. Futures Trust Ethereum ETF is just another glossary term denoting something simple. Remember how ‘supercalifragilisticexpialidocious’ from Mary Poppins only means wonderful.
So is the Futures Trust Ethereum ETF, a term like any other to denote an investment fund that tracks Ethereum’s future price on traditional stock exchanges so that currency jockeys can invest and get exposure to ETH without directly holding it.
Such a mouthful of explanation but thank heavens, you didn’t drop your glass, get scared, or pee on yourself. And since we also do not want you cutting corners, we should help define the spot Ethereum ETF which is just like the Futures ETF only that it tracks the price in real time. But they both serve the same purpose, exposing traditional investors to digital assets investment.
Meanwhile, it’s not only Grayscale’s Ethereum ETF on the bench. If you saw the pile waiting decision, you would easily call the commission chief procrastinator. There is a Blackrock, Invesco, and Galaxy Digital Ethereum ETF awaiting approval.
Industry Reaction to SEC Postponing its Decision on Ethereum ETF
But not everyone is disappointed with the SEC’s decision to put off its decision. And there are three sides of these:
The Bitcoiner who believes all other coins are shit (coins), and must never see the dawn of a crypto fund. Here are the ones partly in agreement with two senators who asked the SEC to stop approving more ETFs.
The Bitcoiner who has no problem with altcoins but is optimistic a small delay in Ethereum ETF approval will allow more uptake for Bitcoin ETFs.
Third is the Hodler, the guys always celebrate themselves for accumulating throughout bear and bull markets but believe the Ethereum ETFs will gather much more momentum by launching in December than in May.
More Info:
- Uniswap Plans to Roll Out a New Version Following Ethereum’s Dencun Update
- What Does Spot Bitcoin ETF Mean for Investors?
If you cannot pick a side, here is what to tell you as we end, “When the winds of indecision blow, plant your flag upon the ground”
*Currency jockey is another slang word for forex traders.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
