Is There a Problem? SEC Chairman Speaks About Ethereum ETF!

The US SEC’s approval process for spot Ethereum ETF applications continues. In this process, ETF experts say that there is not long left for the trading of the products to begin. However, Bernstein analysts predict lower demand for spot Ethereum ETFs compared to Bitcoin ETFs. Analysts expect the lack of ETH staking to reduce spot ETH conversion. Bitcoin’s first-breakthrough advantage could saturate overall demand for crypto ETFs.

US SEC Chairman: Spot Ethereum ETF approval process “Smooth”

cryptokoin.com As you follow from , the market is experiencing sharp fluctuations these days. In this unknown environment, investors are awaiting the launch of spot Ethereum ETFs in anticipation of a catalyst. Although different dates have been mentioned for this, there is no clear date yet. So they’re looking for clues in SEC Chairman Gary Gensler’s speeches. In his latest statements, SEC Chairman Gary Gensler said that there is no problem in the spot Ethereum ETF approval process. Gensler stated that the process went “smoothly.”

According to analysts, Ethereum ETF will be in lower demand compared to Bitcoin!

A new research report by Bernstein suggests that Ethereum ETFs will see investor demand, albeit on a smaller scale, compared to their Bitcoin counterparts. Bernstein analysts Gautam Chhugani and Mahika Sapra emphasize that the lack of ETH staking feature in the ETF could result in less spot ETH conversion. However, they note that basis trading is expected to become more attractive to investors over time. Basis trading involves buying the spot ETF and selling the futures contract at the same time while waiting for prices to converge. This strategy is expected to provide ample liquidity in the ETF market.

Echoing this view, financial giant JPMorgan suggested last month that demand for spot Ethereum ETFs would likely be significantly lower compared to Bitcoin ETFs. The Bernstein report cites Bitcoin’s first-breakout advantage and its potential to dominate overall demand for crypto exchange-traded funds. Notably, the US SEC issued the first approvals for spot Ethereum ETFs last month. However, the investment product is awaiting listing and trading as issuers’ S-1 registration statements are under review. The community expects Ethereum spot ETFs to see trading early next month.

A more refined regulatory framework for other digital assets

Bernstein analysts also highlight ETH’s growing role as the primary tokenization platform. They underline the strong use case for stablecoin payments and tokenization of classic assets and funds. They also state that a more refined regulatory framework is needed for Ethereum and other digital assets. Bernstein hypothesizes that the regulatory narrative will evolve as the US elections approach, especially with the increasing likelihood of a Republican victory and former President Trump’s pro-crypto stance.