There has been rising interest in the value of cryptocurrency ETFs, which recently made heads start to swivel and soften some skeptics. However, the crypto community that may have expected the U.S. Securities and Exchange Commission (SEC) to swallow the Ether ETF approval process hook, line and sinker is experiencing indigestion at the prospect of a delayed procedure.
In their latest filing, the securities watchdog stated it hadn’t received any feedback regarding a proposal to allow BlackRock to list their proposed ETH ETF.
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After failing to receive feedback following the December 2023 invitation for public participation, the SEC announced it was extending the decision deadline for a further 45 days to March 2024. The Commission said in a statement it found it appropriate to designate a more extended period before taking any action so there could be sufficient time to address any issues raised therein.
SEC Nears Ethereum ETF Approval? Commissioner Hester Peirce’s Remarks Hint at Regulatory Shift
The recent historic approval by the SEC of a Bitcoin ETF stirred the hornet’s nest as far as Ether ETF approval is concerned. Even though SEC Chair Gary Gensler may have declared that the BTC ETF approval didn’t signify an open check that would embrace all other cryptocurrencies, there has been a big wave of optimism among investors who believe the approval had set a substantial precedent that could impact the possibility of approving a spot ETH ETF.
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As the industry relishes in the inevitable pregnant pause awaiting the potential outcome of crypto ETF applications, the liberty-focused SEC commissioner “crypto mom” Hester Pierce offered a sneak preview into SEC’s decision-making process. She said the Ethereum ETF approval process would likely be handled with a massive dose of positivity. She opined that the regulatory watchdog was unlikely to assert the outmoded stringent approach it has been known for when dealing with ETF applications. Pierce underscored that the previous circus-like modus operandi that constituted extensive delays, legal battles and security breaches may not reoccur this time.
In a recent media interview with Zack Guzman, Pierce reiterated that it wasn’t the courts’ business to remind the SEC that their approach was arbitrary and capricious.
Regarding her past frustrations with prolonged delays with the Bitcoin ETF approval, she emphasized the significance of ensuring that investors are given choices in the spirit of liberty and stressed the place of clear thinking and consideration when it comes to enforcing regulations in the crypto industry. Pierced underscored the importance of transcending the general skepticism with which the authorities have always used to approach anything touching on the crypto industry.
SEC Delayed Several Ethereum ETF Applications
The ongoing Ping-Pong with the SEC regarding crypto ETF approvals isn’t anything new for BlackRock, who faced many such delays and extensions with their Bitcoin ETF. The company waited at least six months before finally receiving approval on January 10 for a filing they made in June 2023. Other applications from Grayscale and Fidelity are joining them on the waiting list, whose deadlines have also been extended.
According to a statement on the regulator’s website, the Commission requested public comments on how the regulator should handle Grayscale’s application. The SEC is interested in whether the ETH algorithm – Proof-of-Stake (PoS) and the concentration of a large volume of Ethereum in the hands of several individuals could make the fund vulnerable to fraud and manipulation. Grayscale made their initial application for launching a spot ETH ETF in October 2023. The regulator first published its decision on the application on December 5, 2023, giving a January 25, 2024 deadline, which has now been pushed to May.
All’s well that Ends Well?
For those in the know, the SEC didn’t disappoint in delaying its decision to allow BlackRock and Grayscale to launch their crypto ETF products. According to journalists’ predictions, users interested in investing in Ethereum ETFs may have to wait until the summer of 2024 for approval. While the ongoing delays have kept consumers from gaining exposure to Ethereum, the second-largest cryptocurrency, Pierce believes this will eventually create a frenzy around the products that could work out in ETH’s favor, leading to greater mainstream adoption in investment as people scramble to buy crypto ETFs.
FAQs
Will there be an ETF for Ethereum?
While there could still be several obstacles ahead, it seems probable from the ongoing frenzy that the SEC’s induced actions could only delay. Still, ultimately, consumers will be able to access a safe, tax-advantaged way of buying Ethereum ETFs.
What is the best ETF for Ethereum?
In choosing an ETH ETF, it’s essential to consider factors like performance and methodology of the underlying index, age, income, size, domicile, and cost and replication method. The leading products include DDA Physical Ethereum ETP, SEBA Ethereum ETP and 21Shares Ethereum Staking ETP.
Does Ether have an ETF?
Bitwise, which offers a spot in Bitcoin ETF, offers an Ethereum Strategy ETF that exposes companies to building on Ethereum and an ETF through which users can afford BTC and ETH futures.
How to invest in ETH ETF?
The basic steps for investing in ETH ETFs are similar to all other ETFs or securities like mutual funds and stocks. To invest in an Ethereum ETF, the steps to follow are:
- Open an investment account
- Fund the account with cash
- Choose the ETH ETF you’re interested in
- Execute a trade and buy shares
Will Ethereum rise again in 2024?
According to analysts, Ethereum could surge in 2024, mainly because of its increasing popularity, thanks to the anticipation of new products like ETFs.
