In a noteworthy development, Cboe’s BZX exchange is looking to lay the groundwork for the U.S.’s maiden spot ether exchange-traded funds (ETFs). This move, if approved, would make crypto trading history, as it would be the first time a spot crypto ETF is launched in the U.S. Ark 21Shares and VanEck are expected to be tied to the filings made this Wednesday, but there’s speculation about who will act as VanEck’s custodian – a detail that wasn’t disclosed.
To keep things transparent, Coinbase is set to function as the surveillance-sharing partner for both proposed ETFs. It will also be the custodian for ether managed by the Ark 21Shares trust, making it a pivotal piece in the larger puzzle of these ETF applications.
With the U.S. Securities and Exchange Commission’s (SEC) recognition of the ETF filings, we would undoubtedly be stepping in a new era for the world of crypto – a world where ETFs exchange ether on the spot. The SEC has given itself a time limit of 240 days for a final decision, but past experience suggests they may likely use up this entire period.
While spot crypto ETFs are a novelty in the U.S, traditional finance giants like BlackRock and Fidelity have shown a keen interest in making them the norm. They recently opened bids for a spot bitcoin ETF approval from the SEC. This interest isn’t only restricted to bitcoin, with multiple asset managers also showing interest in launching ether futures ETFs.
This brings us to a key point of discussion in crypto circles. In the past, the SEC has consistently rejected spot bitcoin ETF applications. But opinions have started to shift after a recent ruling saw an appeals court dub the SEC’s decision to reject a bid by Grayscale as “arbitrary and capricious”. According to the unanimous ruling, the assets that support a bitcoin futures ETF have a strong resemblance to those backing a proposed spot bitcoin ETF. This decision might just be the push needed for the SEC to approach spot ETFs from a fresh perspective.
The green light for ether spot ETFs will unquestionably be a critical milestone for the U.S financial system. It will redefine the entrée for traditional investors into the realm of digital currency, with the potential to reshape the broader financial landscape. It appears that the crypto world is on the brink of momentous change, but whether this shift will be towards more crypto-friendly policies remains uncertain for now.
Source: Coindesk
