The Securities and Exchange Commission (SEC) from the US gave the go-ahead for them to arrive the first exchange-traded funds to invest directly in the Ether cryptocurrency of the Ethereum protocol. The entity approved files 19b-4 of BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton.
Despite this, ETFs Ethereum cash could take months to officially debut, since ETF introducers have not yet received S-1 registration. This is a central difference with what was the process of the Bitcoin ETFs that began trading the day after the approval of the SEC.
Ethereum ETF: what’s behind this milestone
Iñaki ApezteguiaChief Research Officer of Crossing Capital, in dialogue with this medium, said that although the news was expected, it was surprising but due to some details. “Ethereum was persecuted if he were a security and it has always been persecuted much more than Bitcoin, so it was thought that there could be greater resistance,” he explained.
“I think that the SEC was a little restricted by Congress, by the big funds, and in some way strong pressure was exerted for this to happen,” Apezteguía explained, although he explained that The SEC may eventually continue a crusade against ETH in regards to the staking of this cryptocurrency.
It should be noted that the Ethereum network is a “Proof of Stake” network, in which ETH holders can put in staking your ETH to secure the network and earn rewards. “He staking It is something that was left out of the approval of the ETH spot ETFs, a situation that is not minor, because the funds that would be buying ETH to put as collateral to issue ETFs cannot do so. staking with that ETH and there they are losing 4% annually today,” he highlighted.
Regarding the positive, the expert detailed: “The fact that it is considered Ethereum for a publicly traded fund and that the collateral is not called a security but as a commoditycould be transferred to cryptocurrencies and that noise that despite being a security would be disabled with this ETF decision.”
How the SEC’s decision to approve Ethereum ETFs impacts Wall Street
Mauricio Novellico-founder of N&W Professional Traders, explained in conversation with Ambit, what this SEC decision means for the stock market. “I was not surprised basically by the fundamental principle of any investor, which is when you find a good investment opportunity “We want more of that because the Bitcoin ETF is giving a very good return,” he said.
“Wall Street immersed itself in the world of cryptocurrencies, it did so first with Bitcoin and, why not do it with its younger sister, Ethereum. I think that is going to be the way, they are going to continue advancing with crypto. It is something that brings freshness to the entire ecosystem and also is going to bring a lot of money from the traditional world to the non-traditional world, that is, the crypto world. “I think it will imply an appreciation in both Bitcoin and Ethereum from here to the future,” she added.
It is worth remembering that On January 10 of this year, the United States Securities and Exchange Commission approved 11 Bitcoin-based spot exchange-traded funds.
Ethereum: what is expected to happen to its price in the coming weeks
For Apezteguía, a parallel can be made with BTC. “If we draw a parallel to what happened with Bitcoin, when they approved the Bitcoin ETF, it was at US$47,000 and then it went down to US$40,000 in the next 20 days, and after it hit the bottom it went to US$73 ,000 and made almost 100% in a month and a half. “The same thing may happen with Ethereum with this news, which will fall back to $3,000 and then go to look for its previous maximum price or surpass it.”
For his part, the financial analyst Santiago Amat said to Ambit that “this decision from the SEC was expected and that is why the market discounted it before it happened; what always happens happened, buying the rumor and selling the news.” “Today it reached $4,000 and then went down,” he said but warned that: “We will have to wait for the next few weeks for the ETH ETF to start working unlike what happened when the SEC approved the fund at the time.” Bitcoin Cash”.
“Obviously it’s something mega positive. Maybe, in The following days it went down a little bit, they are discounting all the increase that was experienced“, he said and added: “This is something very optimistic in the medium and long term. We will surely see Ether break all-time highsbut always with caution given that we are not exempt from market manipulation and those who are holding Ether are going to take advantage of it to make a profit, which is why I recommend making gradual purchases while it falls. “I think that in the medium term we are going to see ETH au$s6000”hill.
Source: Ambito
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