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The SEC highlighted the good progress of Ethereum ETFs and experts analyze their impact

The SEC highlighted the good progress of Ethereum ETFs and experts analyze their impact
The SEC highlighted the good progress of Ethereum ETFs and experts analyze their impact

The SEC’s priority remains ensuring full compliance and transparency, with Gensler emphasizing the importance of “disclosure and registration,” crucial elements for final approval of ETFs.

The approval process of Ethereum Spot ETF progressing without setbacks, according to Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), at the Bloomberg Invest Summit. Gensler expressed his optimism about the launch of the new investment product, scheduled for July, underscoring that this event represents a significant milestone for the cryptocurrency market, paving the way for Ethereum, similar to what happened with Bitcoin.

Gensler highlighted the positive progress of the Spot Ethereum ETF approval process, stating that “the registration process is running smoothly,” mirroring previous statements made before the US Senate Appropriations Subcommittee on Financial Services. The SEC works closely with issuers on their S-1 filings, an essential step for ETFs to begin trading. Gensler mentioned a possible release date for this summer.

The SEC’s priority remains ensuring full compliance and transparency, with Gensler emphasizing the importance of “disclosure and registration,” crucial elements for final approval of ETFs.

Ethereum: what the market is analyzing

Asset managers are looking to build on the success of Bitcoin spot ETFs launched in January, which attracted 14 billion dollars in investments. Grayscale, in particular, plans to convert an existing Trust into an Ethereum spot ETF, reflecting a strategy to diversify cryptocurrency investment options.

Eric Balchunas, senior analyst at ETF, suggests that Ethereum-based funds could launch as soon as July 2. A Reuters report indicates that the SEC could approve Ethereum spot ETFs by July 4. Although discussions are still ongoing, the remaining hurdles are reported to be minor adjustments to the offering documents, moving closer to final approval. The expectation of how the market will react to these new ETFs is high.

The debut of similar Bitcoin products earlier this year resulted in assets skyrocketing to nearly $52.96 billion by June 26, according to data from SoSoValue. Still, some analysts are cautious about Ethereum’s potential to replicate that success. James Butterfill, head of research at Coinshares, cites significant differences in market size and volume compared to Bitcoin.

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The debut of similar Bitcoin products earlier this year resulted in assets skyrocketing to nearly $52.96 billion by June 26.

The debut of similar Bitcoin products earlier this year resulted in assets soaring to nearly $52.96 billion by June 26.

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Bryan Armour He also doubts that Ethereum ETFs will generate the same level of enthusiasm. However, other experts, such as Matt Hougan, chief investment officer at Bitwise, maintain an optimistic approach based on a thorough analysis of market capitalizations and a review of international ETF markets.

Once the SEC approves the registration statements for these funds, trading could begin within 24 hours, thanks to previous rule changes approved for large exchanges such as the New York Stock Exchange, Nasdaq and Cboe.

Source: Ambito

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