Ethereum
Ethereum ETF Approval Coming Sooner Than Later, Says Coinbase
A place Ethereum Exchange-traded funds (ETFs) could hit the market sooner than expected, Coinbase says, despite growing pessimism from industry observers.
In a note this week, America’s largest cryptocurrency exchange said that “while there is uncertainty about timely approval given the SEC’s apparent silence toward issuers,” it is only a matter of time before such a product arrives on the market.
There is a long list major asset managers, including VanEck, BlackRock and Franklin Templeton, who have filed documents with the Securities and Exchange Commission to launch an Ethereum ETF.
Such a product would give investors exposure to ETHthe second largest digital coin by market capitalization, via exchange-traded stocks.
But Wall Street’s biggest regulator was slow to respond to applicants and pushed back decision deadlines, echoing its previous approach to screening applications. Bitcoin ETF approvals before I finally pull the trigger in January.
This is generally normal in the ETF application process, but the SEC’s reluctance to talk about investment vehicles has led analysts like Bloomberg and CoinShares to say that these crypto funds would not get the green light before the May deadline.
“As crypto begins to take shape as an election issue, it is also less certain, in our view, that the SEC would be willing to provide the political capital necessary to support a denial,” wrote research analyst David Han institutional at Coinbase.
“Even if the first deadline of May 23, 2024 is rejected,” he added, “we believe there is a high probability that litigation could overturn this decision.”
Last year, crypto fund manager Grayscale won an appeal against the SEC to convert its Bitcoin fund into a cash ETF in a high-profile case.
The SEC then reluctantly said yes to 11 Bitcoin ETFs on January 10. The investment products have since enjoyed enormous success, recording billions of dollars in inflows.
Edited by Andrew Hayward