ETFs
Spot Ether ETFs Likely Close to Getting SEC Approval
Traders are eagerly awaiting approval from the Securities and Exchange Commission for the first spot ether ETFs after the launch of spot bitcoin ETFs in early 2024. Jared Blikre breaks down the state of the cryptocurrency market and how Ether ETFs could affect its trajectory.
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This article was written by Melanie Riehl
Video Transcript
Traders are eagerly awaiting SEC approval for the first spot, Ether ETF S, which could come in weeks or even days for subsequent ones.
Let’s call on our own Jared B, who has been following the movements closely here.
Hey, Jared.
That’s right.
That’s right.
Brad Crypto itself has been under pressure recently, with Bitcoin and Ether down more than 20% from recent highs.
But there is excitement in the cryptocurrency world about a new batch of ETFs that could launch as early as next week on the ground.
Bitcoin ETF S listed in January, Spot E three ts from Blackrock Fidelity.
Little by little, you know the names, they have been busy updating their S’s at the SEC to bring more liquidity to the cryptocurrency market.
And if you’re scratching your head wondering, I thought we already had Ether ETS.
Oh, you’re right.
The securities watchdog already approved several futures-based ETFs in October last year, which is a crucial difference, as it can be more difficult for these futures-based ETFs to track the underlying prices of cryptocurrencies.
And that’s why in January of this year there was so much excitement around the Bitcoin ETS spot that the SEC had resisted for so long.
In fact, the timeline for making crypto products available to the general public through the ETS has a long and storied history that begins well before the pandemic.
Remember the Winklevoss twins?
They tried to get a place.
The Bitcoin ETF was approved in 2013, but was ultimately rejected in 2017.
But the first crypto funds won’t launch until October 2021.
And these are the ones that are based on futures contracts.
The problem at the SEC was Gary Getler himself who crushed cryptocurrency cash applications until the SEC lost a key court battle with Grayscale Investments.
The battle was over the right to convert Grayscale G BT C Exchange Traded Notes, which could only be sold under certain conditions, into an exchange-traded fund that could be purchased by any member of the public after the FTX bankruptcy, which nearly shut the lid on the entire crypto industry in 2022. Grayscale’s court victory lifted morale like a promise of a spot.
Bitcoin.
A TF finally appeared.
And when they finally went public in January this year, investors bought them in droves.
The story continues
The ishares Bitcoin Trust I offering totaled $18.1 billion, nearly double the inflows purchased by Fidel Fidelity’s offering.
In fact, IB is the fourth-biggest ETF gainer of the year in the US among all ETFs.
It’s also worth noting that the Grayscale Bitcoin Trust G BT C saw outflows of $18.7 billion, which is almost the reverse of what Black Black Rocks I bet was taking in.
And part of the reason is the 1.5% management fee that Gray Skill still charges, which must compete with the zero fee of some other offerings.
This is also worth mentioning because we can observe similar dynamics here, where we could see a rotation out of the fund’s gray scales in favor of lower-cost options.
And this could all start as early as next week, all the Spot E three TF officials, they dot the I’s, they cross their TS and anecdotally the comments they received from the SEC.
They are almost nothing.
So it looks like we’re close and the effect that all of this could have on the price of Bitcoin in either case, is it going to affect prices at all?
Well, it is worth recalling that the price of Bitcoin saw a huge surge due to the excitement surrounding the ETF spot S. But when the launch day came, there was a price crash, soon, the prices reached new all-time highs.
And that’s partly because there was so much attention on these ether ETFs. So we’ll have to see what the future holds here, but it looks like next week we’re going to have some more crypto options to put crypto into people’s 401(k) portfolios.
Ks Brad Jared follows all types of assets surrounding the crypto landscape.
Jared.
I appreciate it.