A few days ago, the U.S. Securities and Exchange Commission (SEC) would almost certainly reject applications from BlackRock, VanEck, and others to launch exchange-traded funds (ETFs) backed by Ether. However, recent developments indicate that the likelihood of approval of such products is increasing significantly.
The SEC’s change of heart:
– According to reports, the SEC has asked issuers of Ether ETFs to expedite their Form 19b-4 filings. This step signals that the regulator is ready to review applications more thoroughly.
– The odds are now looking up, with analysts such as Seyffarth and Balchunas estimating the probability of SEC approval of an ETF airdrop at 75%, significantly higher than previous forecasts.
Why it matters:
– Wider access: Approval of an Ether ETF could significantly expand investor access to cryptocurrencies, making buying and selling them easier through traditional brokerage accounts.
– Institutional interest: The emergence of Ether ETFs is expected to stimulate the inflow of institutional capital into the cryptocurrency market, which may lead to higher prices and greater liquidity.
– Legitimization: The SEC’s approval of the ETF will be an essential milestone for Ether, legitimizing it as an asset and facilitating its wider adoption.
A final decision on the approval of the Ether ETF is still pending. The SEC has the right to reject applications, and the outcome is subject to careful analysis. The cryptocurrency market remains volatile and investing in the Ether ETF involves certain risks.
Despite these caveats, the increasing likelihood of SEC approval of Ether ETFs is a positive development for the cryptocurrency industry. This could lead to a significant increase in accessibility, institutional interest, and legitimization of Ether.
