spot Ethereum Despite growing pessimism from industry observers, Coinbase says exchange-traded funds (ETFs) could come to market sooner than expected.
On this week’s note, America’s largest cryptocurrency exchange Said “While there is uncertainty about timely approval given the SEC’s apparent silence on issuers,” it says it is only a matter of time before such products come to market. .
there is long list A number of top asset managers have filed paperwork with the Securities and Exchange Commission to release Ethereum ETFs, including VanEck, BlackRock, and Franklin Templeton.
Such products would give investors exposure to: Ethereumthe second-largest digital coin by market capitalization via shares traded on stock exchanges.
But Wall Street’s biggest regulator was slow to respond to applicants, ultimately pushing back the deadline for a decision in line with its previous approach of assessing Bitcoin ETF approval before pulling the trigger in January.
This is normal in the ETF application process, but the SEC’s reluctance to talk about investment vehicles has led analysts including Bloomberg and CoinShares to To tell Such a crypto fund will not be able to get the green light by the May deadline.
“As cryptocurrencies begin to take shape as an election issue, it remains to be seen whether the SEC will actively mobilize the political capital needed to support denials,” said David Han, institutional research analyst at Coinbase. “In our view, there is less certainty.”
“Even if the initial deadline of May 23, 2024 is rejected, we believe it is likely that litigation will overturn that decision,” he added.
Last year, virtual currency fund manager Grayscale won the appeal In a high-profile case, it asked the SEC to convert Bitcoin funds into spot ETFs.
The SEC then reluctantly gave its nod to 11 Bitcoin ETFs on January 10th. Since then, this investment product has been a huge success, with billions of dollars flowing into it.
Edited by Andrew Hayward
