Compass Investments

Crypto vs. Dollar

📌 SEC is reviewing applications to create Ethereum ETFs from large companies.

The SEC is accepting comments on ethereum ETFs proposed by Grayscale, Fidelity and Bitwise for listing on the Cboe BZX and NYSE Arca exchanges. Ethereum

– The SEC is accepting comments on ethereum ETFs proposed by Grayscale, Fidelity and Bitwise for listing on the Cboe BZX and NYSE Arca exchanges.

Following the Bitcoin ETF, there will be a 21-day period for public review.

The correlation between the ethereum futures and spot markets is critical to the SEC’s decision.

The SEC has previously approved an Ethereum futures ETF, setting a precedent for ETFs based on the spot market.

Grayscale and NYSE Arca, using Coinbase analysis, argue that the Ethereum spot and futures markets are closely linked, minimizing the risk of fraud.

They challenge the SEC’s argument for potential failure based on regulatory concerns.

Additional issues for the SEC to consider include the governance of ETFs, the process for creating and redeeming shares, and the fee structure.

The request for opinions is a routine step and does not indicate the likelihood of approval.

The demand for Ethereum ETFs followed the SEC’s approval of Bitcoin ETFs, indicating a growing interest in cryptocurrency financial instruments.

Grayscale, which owns Coinbase, is actively exploring the idea of converting an Ethereum trust into an ETF.

Despite some uncertainty over the timing of Ethereum ETF approval, optimism remains strong, with some analysts, such as Standard Chartered, expecting approval by May.

This enthusiasm underscores the growing desire to incorporate cryptocurrencies into traditional financial instruments.

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