Ethereum
US SEC Approves Spot Ethereum ETFs: Crypto Momentum Accelerates
Reacting to the first stage of approval of Ethereum ETFs by the SEC, Alex Saleh, head of partnerships at Coincover, said: “This is a pleasant surprise given the challenges with Bitcoin ETF approvals and the historical hostility of the SEC towards cryptography.
“The United States is the largest ETF market in the world, and where the United States moves, others usually follow. The launch of Ethereum ETFs still needs to go through a second stage of approval, but if given the green light, it would represent a major vote of confidence in the role digital assets will play in our financial system and open the floodgates to more of them. some products.”
Additionally, the SEC’s decision could be a nod to the commercial success of Bitcoin spot ETFs thus far, with the crypto becoming very popular among traditional investors happy to take higher risks in what has otherwise been a troubled investment landscape over the past couple of years.
Alex continues: “The SEC’s decision is another sign of the growing appetite for crypto ETFs and could introduce further demand pressure on Ethereum spot prices since exposure to Ethereum would be opened up to a pool wider range of investors.
“This is an exciting time for the crypto community, but any new financial instrument always carries risks. Volatility is a given, and widespread adoption of Ethereum ETFs would lead to fund managers accumulating large amounts of Ethereum across a range of custody methods. This will be a prime target for hacks, attacks and possible human errors.
“We anticipate higher expectations for risk mitigation and security capabilities, which means security is paramount and must be a top priority for ETF managers.”
However, not all reactions to the SEC’s latest announcement have been uniform, and where Alex Saleh sees the introduction of spot Ether ETFs as a welcome surprise, Bitpanda co-founder and CEO Eric Demuth all welcoming the announcement, describes it as “well awaited”. “.