SEC approval for spot Ether ETFs imminent as crypto gains further mainstream acceptance

At least three of eight asset managers looking to launch exchange-traded funds (ETFs) tied to the spot price of cryptocurrency Ethereum have received preliminary approval from the U.S. Securities and Exchange Commission, Reuters reported, citing three sources.

Ethereum is the native cryptocurrency of the Ethereum blockchain, the second most popular cryptocurrency in the world. However, the corresponding ETFs are securities that allow investors to bet on multiple assets, reducing financial risk and exposure.

Those applying for full approval must submit final bid documents to regulators before the end of the week, Reuters reported. All eight are understood to be set to launch simultaneously.

The eight asset managers whose filings the SEC is likely to approve on July 23 include multinational investment firms BlackRock and Fidelity, as well as crypto index fund manager Bitwise.

According to a report by Bitwise chief investment officer Matt Hougan, Ether spot ETFs are expected to generate $15 billion in net inflows in the first 18 months.

The report also claimed that Ether spot ETFs would have a greater impact compared to Bitcoin due to structural reasons such as Ether’s near-term inflation rate being zero.

Nine US spot Bitcoin ETFs were launched in January, making it one of the most successful launches in the history of the ETF market.

This launch comes after a years-long process with the SEC, which has regularly rejected products over concerns of market manipulation.

The combined market cap of all cryptocurrencies has reached an all-time high
According to research and analysis company GlobalData’s Cryptocurrency Thematic Intelligence 2023 report, it briefly exceeded the $3 trillion mark in November 2021, having previously exceeded the $1 trillion mark in January 2021 and the $2 trillion mark in May of the same year.

By the end of 2021, its market value had fallen to $2.2 trillion amid fears that the Fed would begin raising interest rates.

Weaker macroeconomic conditions in 2022, wider stock and
The crypto market crash. The crypto market crash was exacerbated by events like the Terra collapse and FTX bankruptcy.

The article, titled “SEC approval nears for spot Ether ETFs as cryptocurrencies gain more mainstream acceptance” was originally created and published by Verdict, a brand owned by GlobalData.

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