Spot Ethereum ETF Receives Final Approval to Start Trading Tuesday

adminJuly 23, 2024

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The exchange-traded fund (ETF) was approved to begin trading on Tuesday after weeks of discussions over changes to its registration statement.

The U.S. Securities and Exchange Commission has approved the registration forms for 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, effective Monday afternoon. Registration forms for Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust also became effective Monday.

“The launch of the 21Shares Core Ethereum ETF (CETH) represents a significant milestone for 21Shares and U.S. investors. Today’s approval represents further evidence that cryptocurrencies as an asset class are here to stay,” he said. This is what Ophelia Snyder, co-founder and president of 21Shares, said in an emailed statement.

Companies looking to launch a spot Ethereum ETF have received approval from the U.S. Securities and Exchange Commission to file Form 19b-4. In May. However, they wanted the registration statement to become effective before the launch. The approval was unexpected because of the lack of engagement between the SEC and the issuer. However, in the week leading up to the deadline, the agency seemingly Change of heart And they started letting the exchanges know that they were going to do that. approve Here’s information about that week’s Ethereum ETF.

Cynthia Lo Bessette, head of digital asset management at Fidelity, said the company’s spot Ethereum ETF will allow investors to “Thoughtful indexing and product design, backed by a dedicated operations and trading team and industry-leading security.”

“This is a classic example of Fidelity’s rich history and commitment to meeting our customers’ evolving needs,” Loewes added.

A spot Bitcoin ETF was approved earlier this year, and since then, it has included: Billions The dollar. Ethereum ETF could see lower demand than the Bitcoin ETF, and the Bitcoin product could get 10% to 15% of the assets it receives, said Eric Balchunas, senior analyst at Bloomberg ETF. interview In May, with The Block.

“That would be $5 billion to $8 billion, that is, if it were a normal launch in the first few years. That’s a pretty good price,” he said.

The current spot ether market size is less than a third of the size of the bitcoin market, Nate Jerash, president of The ETF Store, said at the X event hosted by The Block on Monday.

“I think that’s a reasonable proxy for what you might expect from a spot ether ETF,” Geraci added. “I think we’ll see about a third of the demand that we saw from a spot bitcoin ETF.”

Following the approval of the spot Bitcoin ETF, exchanges have begun considering options for trading the product, but they have yet to receive regulatory approval. Options are contracts that represent the right for an investor to buy or sell a given asset at an agreed-upon price on a specified date and time.

Next, the company may decide to include staking in its spot Ethereum ETF product. The initially approved Ethereum ETF had a staking component, but it was removed. The SEC problem In the past, we provided staking services.

The company said it would need SEC approval to include staking or options in its spot Ethereum ETF. Bloomberg ETF analyst James Seifert attends the X event on Monday.

“I think it’s not a question of if, it’s when,” Seifert said. “It’s just a matter of figuring out what that when is.”

Jake Chervinsky, Variant’s chief legal officer, said in a July 17 post on X that it’s not just a matter of when or if you’ll invest in a spot Ethereum ETF.

“There is no legitimate reason for the SEC to ban staking in ETH ETFs,” Chervinsky said Staking ETH for X is not a security, and investors can fully understand the risks of staking products and decide for themselves whether to take on those risks. It will take time, but in my opinion, it’s not a matter of ‘when’ but ‘if’.”

Updated on July 22 at 9:14 PM UTC to include quote from Fidelity.

Updated on July 22nd at 9:16 PM UTC to include Franklin Templeton.

Updated to include Grayscale on July 22nd at 9:50 PM UTC.

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adminJuly 23, 2024