Ethereum

SEC Approval of Ethereum Spot ETFs Would Benefit All Investors

Published

6 months ago

18 May, 2024

SEC Approval of Ethereum Spot ETFs Would Benefit All Investors

The SEC, having already approved Bitcoin spot ETFs, is expected to give the same approval to Ethereum spot funds. This would create a new wave of investment, with positive economic impacts, writes Rachel Lin of SynFutures.

Unshu – stock.adobe.com

Opinions vary widely on the potential approval of ethereum spot exchange traded funds, or AND Fby the United States Security and Exchange Commission. Despite growing uncertainty over when or whether the regulator will approve the new financial instrument, there is optimism over the prospects of an Ethereum ETF being approved – similar to the fervor for the long-awaited . Bitcoin ETFs.

The BTC ETF proved instrumental in generating institutional interest in the digital asset class, particularly in regions like Hong Kong, Singapore and Dubai, where investors were looking for new growth opportunities after missing out on the surge in stock markets. Its success has prompted investors who once avoided cryptocurrencies to finally take the plunge more safely.

As the second largest digital asset, Ethereum has a vast ecosystem that positions it as a leader in the digital economy. Regulatory clarity, coupled with institutional investment, is poised to propel Ethereum to unprecedented heights. Beyond simple price action, the approval of Ethereum ETFs carries symbolic significance, cementing crypto’s status as a legitimate asset class and reinforcing its role in the evolving financial landscape.

The trend toward regulatory clarity is undeniable, as evidenced by the SEC’s recognition of Ethereum’s non-secure status by allowing futures trading. This sets a clear precedent for the approval of a spot Ethereum ETF. Deviating from this path would not only highlight regulatory ambiguity, but also undermine market confidence. Additionally, proactive regulatory initiatives in various jurisdictions like Hong Kong, where plans for Bitcoin and Ethereum spot ETFs have just been approved, highlight the growing global acceptance and recognition of the potential of Ethereum-based financial instruments . These developments highlight the urgent need for the SEC to align its regulatory framework with changing market dynamics and maintain its competitiveness in the global landscape.

There is no doubt that market demand from institutional investors is driving the push for approval of Ethereum ETFs. The list of heavyweight players eagerly awaiting the green light – BlackRock, Fidelity, Invesco with Galaxy, Grayscale, VanEck, 21Shares with Ark and Hashdex, and more recently Bitwise – highlights the potential of Ethereum ETFs to open up new avenues of investment and liquidity. This influx of institutional capital could not only strengthen Ethereum’s market profile, but also catalyze the development of more sophisticated products and services within the Ethereum ecosystem.

Additionally, the fact that global ETF assets under management, or AUM, have surpassed $11 trillion suggests that investors are increasingly turning to ETFs as their preferred investment vehicle. While ETFs represent 13% of equity assets in the United States, indicating a significant adoption rate, their penetration is comparatively lower in Europe (8.8%) and the Asia-Pacific region (4.6%). %). Lower ETF penetration rates in Europe and the Asia-Pacific region suggest potential growth opportunities. As more ETF products become available, tailored to regional preferences and regulatory requirements, we could see further expansion of the ETF market globally.

Given the lessons learned from BTC ETFs and the growing recognition of crypto as a viable alternative asset, particularly in a slowing economy, ETFs provide a less expensive and tax-efficient means of exposure to cryptocurrencies. They simplify the complexities associated with owning crypto outright and expand accessibility from individual retirement accounts to large institutional accounts.

The broader impact of the Ethereum ETF approval ripples across both short- and long-term horizons. In the short term, we can expect increased trading activity and price volatility for Ethereum and altcoins in the days leading up to the SEC decision. However, in the long term, the institutional adoption facilitated by Ethereum ETFs could drive the growth of the ecosystem, paving the way for a more robust and diverse range of financial instruments. Additionally, approval would provide much-needed regulatory clarity, particularly for Ethereum-based financial products, thereby alleviating uncertainty and fostering an environment conducive to innovation.

In light of regulatory precedent, global trends, and market demand, it appears increasingly likely that the SEC will approve Ethereum ETFs, despite delays and regulatory hurdles. I confidently predict that this will propel Bitcoin and Ethereum prices to new highs. These steps will reflect the growing trust in cryptocurrencies and herald a new era of mainstream adoption and acceptance.

Source

Related Topics:AND F Bitcoin cryptocurrency second

Up Next

Analyst Predicts Ethereum ETF to Trigger Major Moves in ETH Market

Don't Miss

Fund Managers Predict SEC Rejection of Ethereum ETFs Next Week

Chain Feed Staff

We are the editorial team of Chain Feed Staff, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Chain Feed Staff, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

Ethereum

QCP sees Ethereum as a safe bet amid Bitcoin stagnation

Published

4 months ago

31 July, 2024

Chain Feed Staff

QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.

Read on to find out how you can benefit from it.

Bitcoin’s Struggle: The $70,000 Barrier

For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.

Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.

QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.

The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.

Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.

A glimmer of hope

QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.

QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.

Source

Ethereum

Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum records $17.9 billion in spot volume despite 3% drop

An Ethereum ICO participant has emerged from nearly a decade of inactivity.

Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.

The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.

Screenshot 2024 07 30 at 171307

This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.

Recent Transactions and Movements

The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.

Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.

Why are whales reactivating?

It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.

In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.

At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

-Advertisement-

Source

Ethereum

Only Bitcoin and Ethereum are viable for ETFs in the near future

Published

4 months ago

31 July, 2024

Chain Feed Staff

BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future

Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.

In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”

Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.

BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.

Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.

Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.

Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.

Source

Ethereum

Ethereum Posts First Consecutive Monthly Losses Since August 2023 on New ETFs

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum sees first monthly consecutive losses since August 2023 amid new ETFs

Available exclusively via

Bitcoin ETF vs Ethereum: A Detailed Comparison of IBIT and ETHA

Andjela Radmilac · 3 days ago

CryptoSlate’s latest market report takes an in-depth look at the technical and practical differences between IBIT and BlackRock’s ETHA to explain how these products work.

Source