The crypto markets have lately been a hive of activity following ‘official’ steps towards the launch of spot Ethereum exchange-traded funds (ETFs) in the United States. This move was initiated by VanEck and ARK, as reflected in their recent 19b-4 filings with the Chicago Board Options Exchange (CBOE). The decision to file the 19b-4 – a form deposited by self-governing bodies to demand a change of rules to the U.S. Securities and Exchange Commission – marks a substantial shift from the previous S-1 filings which only indicated intent to list a specific investment product on a national exchange.
According to Bloomberg ETF analyst James Seyffart, these filings “officially start the clock” for the Securities and Exchange Commission (SEC) to make a decision related to Ether ETFs. However, it’s worth noting that the securities regulator has the discretionary power to delay the decision, as experienced in the case of spot Bitcoin ETFs.
This significant step in the crypto ETF space left many speculating on the pros and cons that could arise from SEC’s subsequent decision. On one hand, there is optimism in the market about the approval of spot Ethereum ETFs. Such a move could open up a new avenue for investors to diversify their portfolios and potentially gain from the growing popularity and adoption of Ethereum.
On the contrary, skeptics argue about the risks involved, primarily the high volatility and unpredictability of the cryptocurrency markets, which could potentially lead to considerable losses. Moreover, the SEC’s recent delays in making decisions on Bitcoin ETFs have raised concerns about whether Ethereum ETFs could face similar postponements, thus resulting in a longer wait for investors.
Despite these contrasting views, Seyffart anticipates some more spot Ethereum ETF filings in the coming days. Relatedly, Grayscale Investments and BlackRock are amongst several firms vying for the approval of a spot Bitcoin ETF.
All these developments indicate a highly active and anticipatory atmosphere within the crypto markets. While the eventual outcome remains unknown, market participants eagerly await the SEC’s decision, as it’s likely to have profound influences on the crypto market and Ethereum in particular. All in all, one thing is clear – this ‘official’ race for the U.S. first spot Ether ETF has indeed added another layer to the ongoing saga of blockchain and cryptocurrency adoption.
Source: Cointelegraph
