After the approval of the Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), experts discussed this development at the X Spaces conference.
On May 23, the SEC approved the 19b-4 application of Ethereum ETF applicants, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
Following the approval of the Ethereum ETF, Cointelegraph Editor-in-Chief Gareth Jenkinson hosted an X space with Bloomberg analyst Eric Balchunas, VanEck Director of Digital Asset Research Matthew Sigel, Consensys Global Head of Regulatory Affairs Bill Hughes, and Animoca Brands Co-founder Yat Siu.
What will happen after the approval of the Ethereum ETF?
After the approval of the spot Ethereum ETF, Balchunas expects a situation similar to the spot Bitcoin ETF. The analyst describes it as “copycat racing” where issuers will launch on the same day.
Although there may be similarities to the spot Bitcoin ETF, Balchunas believes that the trading volume of the Ethereum ETF may be smaller.
“I would look for a lot of similarities, but I would divide what you see in Bitcoin by about 10. So, in the first couple of weeks, you might have a total volume of 10 to 20 billion dollars. I just don’t think it’s going to be that big.”
While the analyst believes that the scale of the spot Ethereum ETF may not be as large as the Bitcoin ETF, Balchunas suggests that traders may take interesting actions. “You might see people shorting the ETF and buying Ethereum because you can collateralize it.”
Meanwhile, Sigel, who works with one of the ETF issuers, states that they will go out and make a “very compelling investment case” for Ethereum. VanEck executives emphasize that they have been working with teams to find the ideal combination of Bitcoin and Ethereum and will soon release their analysis.
Sigel also believes that there are many tech and stock investors looking for assets with intrinsic value. The executive states that these investors may not be aware of Ethereum and its “vibrant decentralized application (DApp) ecosystem.”
The U.S. doesn’t want to play second fiddle
Siu, who is working with the Hong Kong government to promote Web3 development in the Special Administrative Region, states that Hong Kong can expect more developments than the United States. It is starting to compete in the cryptocurrency and Web3 space.
On April 15, the Securities and Futures Commission (SFC) of Hong Kong approved the first spot BTC and ETH ETFs. With the approval of spot Bitcoin and Ethereum ETFs in the United States and Hong Kong, the executive believes that other jurisdictions may start considering having their own crypto-based exchange-traded funds. He explains:
“Now that the U.S. has approved, I think other countries around the world, whether it’s the UK, Singapore, Japan, or the Middle East, like Dubai, they will consider, ‘Okay, we need our own version of a spot ETF.'”
Siu believes that the United States doesn’t want to be left behind as jurisdictions around the world venture into crypto ETFs. “I don’t think the U.S. wants to play second fiddle to anyone.”
Because of this, the executive believes that with the “shift in sentiment” in the United States, there will be more interesting developments.
Ethereum as a commodity
Although the SEC did not explicitly declare Ethereum as a commodity, Hughes believes that the approval of the spot ETF implicitly acknowledges this. However, the Consensys lawyer states that the SEC should maintain transparency regarding the impact of its rulemaking. He explains:
“From our perspective, these rule amendments are concerning. We should be transparent about the impact of such things, not just the rulemaking itself.”
Furthermore, while the approval of the ETF is seen as a victory for cryptocurrency, lawyers remain skeptical about whether the SEC will adopt a more liberal stance on crypto-related matters in the future.
However, Hughes also states that this development may highlight a “tension in legal theory” within the SEC to demonstrate the reasonableness of its enforcement actions.
Tags:
Ark 21Shares
Bitwise
Blackrock
Franklin Templeton
Grayscale
Invesco Galaxy
SEC
VanEck
Ethereum
Fidelity
Bitcoin
CoinTelegraph
Source link:
https://www.jinse.cn/blockchain/3686299.html
Note: The views expressed in this article do not constitute investment advice.
Original article link:
https://www.bitpush.news/articles/6806890
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