American Watchdog Surprisingly Delays Decisions on Ether Funds Until May
The Securities & Exchange Commission (SEC) has provisionally rejected applications for Ether Funds, these are…
The post American Watchdog Surprisingly Delays Decisions on Ether Funds Until May first appeared on Crypto Beat News.
The Securities & Exchange Commission (SEC) has provisionally rejected applications for Ether Funds, these are Ethereum exchange-traded funds, leaving industry giants Fidelity and BlackRock awaiting further decisions. Standard Chartered Bank analysts had previously expected the SEC to follow its Bitcoin ETF approvals with a green light for Ethereum spot exchange-traded funds proposed by BlackRock and others.
The SEC had approved numerous Bitcoin ETFs, enabling investors to gain exposure to Bitcoin’s price movements without direct ownership. This financial product was anticipated to extend to Ethereum, the second-largest cryptocurrency by market capitalization, promising a similar ease of access and investment.
Ether funds victim of concerns over market stability and regulatory compliance
However, the SEC’s recent actions have delayed the approval of several Ethereum ETFs, including those proposed by BlackRock and Grayscale, until May 2024. These proposed funds, aiming to include both spot Ether and futures contracts, are under extended review as the SEC seeks additional public feedback. The refusal comes amid concerns over market stability and regulatory compliance.
The postponement marks the second instance since BlackRock submitted its application for the iShares Ethereum Trust in November. Initially, the agency deferred its decision in late January, simultaneously prolonging the evaluation period for a comparable proposal from Grayscale Investments.
As billions of dollars flow into spot bitcoin funds, the interest in crypto ETFs has escalated, driving the leading cryptocurrency to reach a new all-time high today. Ethereum, ranking second in terms of market capitalization, has seen recent gains but still trails approximately $1,000 below its highest record of $4,891.70, as per CoinMarketCap data.
The outcome of these deliberations could significantly influence the future of cryptocurrency investments, potentially paving the way for broader adoption of Ethereum and other digital assets through regulated, accessible investment vehicles.
The post American Watchdog Surprisingly Delays Decisions on Ether Funds Until May first appeared on Crypto Beat News.
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