Ether ETFs Delayed Until May, Potential Bitcoin ETFs Greenlit by January
The U.S. SEC has postponed its verdict on multiple Ether ETFs to May 2024. Despite this delay, there's anticipation from some analysts that approvals for Bitcoin ETFs could come as early as January 2024.
The United States Securities and Exchange Commission has extended its review period for various Ether (ETH) exchange-traded funds (ETFs) to May 2024. This decision affects the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF is designed to encompass both spot Ether and futures contracts, whereas Grayscale's Ethereum Futures ETF is perceived as a strategic move to potentially pave the way for Grayscale to transition its Ethereum Trust into a spot Ethereum ETF. In its official statements, the SEC mentioned initiating further public discussions to gather additional feedback on the potential listing of these ETFs. The commission has also postponed its assessment on the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood's ARK Invest in partnership with 21Shares.
Several market experts remain optimistic about the approval of a Bitcoin (BTC) spot ETF in the early months of 2024. Bloomberg's ETF specialists, James Seyffart and Eric Balchunas, believe that despite the flurry of last-minute modifications by applicants, the U.S. SEC could give the green light to a Bitcoin ETF come January 2024. Seyffart highlighted BlackRock's recent adjustments to their proposed spot Bitcoin ETF, opting for the SEC's cash-based redemption system over alternatives like asset-based redemptions or those involving non-monetary assets such as BTC.
Seyffart pointed out that several contenders, including ARK, Bitwise, and Valkyrie, have adopted a cash-centric approach. Meanwhile, others like Grayscale and WisdomTree continue to have both cash and asset-based options in their submissions. Earlier in December, legal expert Scott Johnsson foresaw a trend where ETF hopefuls would lean more towards a cash-based creation and redemption mechanism for their offerings.
If the U.S. SEC approves Bitcoin and Ethereum ETFs, it could significantly boost the adoption of cryptocurrencies within the broader financial ecosystem. Such approvals would provide more legitimacy to Bitcoin and Ethereum as investable assets, making them accessible to a wider range of investors, including institutional players who have been cautious due to regulatory uncertainties. As more investors gain exposure to these assets through ETFs, it could lead to increased demand, potentially driving up prices. Additionally, ETFs often offer a more straightforward and familiar investment vehicle for traditional investors, which could further accelerate the mainstream adoption of cryptocurrencies.
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