① The cryptocurrency craze caused by Bitcoin is obvious to all, but many people are still surprised by the rise in Ether this year; ② Although not as favorable news as Bitcoin, the expectation that an Ether ETF will be listed after the Bitcoin ETF continues to push investors to increase Ether's spot; ③ The SEC's attitude towards Ether ETFs is more resistant, which makes industry insiders less convinced that they can be listed in the short term.
Financial Services Association, April 9 (Editor Malan) Ethereum's recent rise has been astonishing. The cumulative increase this year has reached 57%, which is only one step away from Bitcoin's increase (61%), supported by both ETF listings and halving events.
As of press time, the price of Ether is approaching $3,700. An important reason why the market is so optimistic about Ether is that after the Bitcoin ETF is issued and listed, an Ether ETF is also expected to be launched.
Edward Chin, co-founder of digital asset hedge fund Parataxis Capital, pointed out that the attitude of issuers and the US Securities and Exchange Commission on Ethereum ETFs is sparking ongoing discussions.
According to reports, BlackRock and Fidelity, many of the top issuers in Bitcoin ETFs have submitted applications to the US Securities and Exchange Commission (SEC) to launch an Ether ETF, but the SEC has yet to take a stand.
In the opinion of investors, as long as the SEC does not explicitly refuse, this means that the possibility of final approval is extremely high. Because during the Bitcoin ETF listing process, the SEC, which had always been skeptical about cryptocurrencies, had such a vague attitude, but in the end, it still pinched its nose and acquiesced in the Bitcoin ETF.
Since the launch of the Bitcoin ETF in January, the market has rapidly accumulated 59 billion US dollars. The fund market was extremely shocked by how fast it was able to absorb money. It is regarded as the most successful debut in the history of the fund category, and helped the spot Bitcoin price reach a record high in March.
Ready-made role models are just around the corner, which also makes crypto investors passionate about Ether.
mixed feelings
Good news is that the SEC has recently opened a public comment window for three Ether spot ETF proposals. Grayscale, Fidelity, and Bitwise have applied for issuance.
The bad news is that industry analysts aren't as optimistic about the issuance of Ether ETFs as Bitcoin was back then. Some people pointed out that there is a 75% chance that the SEC will refuse to issue an Ether ETF before May because the SEC currently believes that the correlation between Ether futures and spot prices is weak.
The SEC previously examined the security of Bitcoin using the correlation between price changes in spot Bitcoin and CME Bitcoin futures. This data is thought to be able to detect fraud and manipulation in the market.
Furthermore, in January, the SEC also emphasized that approval of a Bitcoin ETF does not mean that the SEC will show mercy to other cryptocurrencies. The SEC recognizes Bitcoin's commodity status, but other tokens should actually be classified as unregistered securities.
Meanwhile, the SEC is also continuing legal action to include Ether within its scope of regulation. This effort will also clearly conflict with the issuance of an Ether ETF.