The US Securities and Exchange Commission (SEC) has recently given the go-ahead for a spot Bitcoin ETF, albeit somewhat reluctantly. This has sparked speculation about when the agency will approve an exchange-traded fund that tracks the performance of the second-largest cryptocurrency.
The year 2023 is set to be a landmark year for ETFs, with numerous companies filing for such products for both Bitcoin and Ethereum. This trend seems to have gained momentum after BlackRock filed for an ETF in the middle of the year, prompting many others to follow suit. Currently, nearly a dozen Bitcoin ETFs are trading on US stock markets, shifting the focus to other cryptocurrencies, such as Ethereum.
Several companies, including Grayscale, have filed to launch Ethereum ETFs. Grayscale is attempting to convert its Ethereum Trust into a spot ETF, similar to what it did with its flagship Trust – GBTC. However, the SEC continues to delay the decision, with most applications now having to wait until May. The Commission has a history of delaying or rejecting crypto ETFs for years before finally allowing them to reach the markets.
An analytics platform, Santiment, conducted a survey to gauge community opinion on the matter. The majority, over 52%, believe the US will have a spot Ethereum ETF by the end of this year. Approximately 10% are even more optimistic, predicting it will be approved this month, while 11.3% don’t see it happening at all.
The approval of Bitcoin ETFs had a significant impact on its price, which soared in the months leading up to the SEC approvals and on the first day of trading. However, the trend reversed sharply in the following days, with the asset dropping by almost $8,000 in 36 hours when the ETFs were already live for trading. This has given those in the “sell-the-news” camp an advantage so far. Ethereum, on the other hand, has just now started to increase in value, which could be a speculative run as many expect an ETF to arrive soon.
It will be interesting to observe how Ethereum’s price will perform in the months before and after such a product is approved, if it ever is.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Binance Futures, Santiment, US Securities and Exchange Commission, BlackRock, Grayscale |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
