As with the Bitcoin spot ETF, the possible approval of an Ethereum spot ETF is the talk of the town. The latest news is that the community still has to wait a few months to find out if the SEC would approve one or not.
Approval of an Ethereum Spot ETF, not before May 2024
The Ethereum platform has officially entered the race to approve or reject an Ethereum Spot ETF, much like what is happening for Bitcoin. Indeed, the clock is now ticking as Grayscale’s move for the Ethereum Trust is now documented in the Federal Register.
This post starts a 240 day countdown. A period during which the Securities and Exchange Commission (SEC) is required to provide its response. In other words, the SEC has until May 2024 to rule.
According to analysts, this delay is expected to coincide with the start of trading for a bitcoin ETF. A prospect which according to projections should materialize next year in January.
The SEC has the right to extend the evaluation period for the Ethereum Spot ETF application until May. At the end of this deadline, the American financial regulator would be forced to sanction or reject the proposal for an Ethereum Spot ETF.
More months of speculation
It should be remembered that currently Grayscale’s Ethereum Trust alone holds some 3 million ether (ETH), Ethereum’s native crypto. A staggering number which makes Grayscale Investments the largest asset manager in the world committed to the second most important crypto on the market.
This adds an interesting dimension to the saga around the Ethereum ETF. Especially since this fund is currently trading at a 22% discount. This is a substantial premium compared to the 13% discount seen on Grayscale’s Bitcoin Trust.
This situation is linked to the recent dynamics of the crypto market which has led to a reduction in the Bitcoin discount. A consequence of the growing anticipation of its conversion into a publicly tradable ETF.
If the conversion comes to fruition, as is widely anticipated, then the approval of an Ethereum Spot ETF would become almost inevitable. There are reasons for this. This is because Ethereum futures ETFs have already been listed. Not to mention that justice has also established that it is not permissible to authorize one, while excluding the other. To be continued.
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