Crypto News- In a recent interview with Forbes, Matt Hougan, the Chief Investment Officer at Bitwise, shared his perspective on the delayed decision by the U.S. Securities and Exchange Commission (SEC) regarding spot Ethereum exchange-traded funds (ETFs). He believes this delay could actually work in favor of the market.
Bitwise CIO Urges SEC to Postpone Ethereum ETF Approval Until December: Insider Insights
Hougan emphasized that while the investment industry is currently fixated on Bitcoin products, a delay in Ethereum ETF approval could give traditional finance (TradFi) more time to acclimate to Bitcoin and cryptocurrency. He expressed optimism that this gradual assimilation would pave the way for a more successful launch of Ethereum ETFs in about a year’s time.
SEC’s Ethereum ETF Decision: Delays and Diminished Hopes for May Approval
Bitwise is among the latest contenders seeking approval for a spot Ether ETF, alongside renowned institutions such as BlackRock, Fidelity, Grayscale, Franklin Templeton, VanEck, and Invesco Galaxy. The SEC has already extended its decision timeline for several applicants, leading to diminishing hopes for approval in May. Market analysts at Bloomberg have downgraded the probability of an Ethereum ETF approval in May from 70% to 35% since the beginning of the year. Concerns have also arisen regarding the SEC’s scrutiny of the Ethereum Foundation and the potential classification of Ether as a security.
Despite these concerns, BlackRock’s CEO, Larry Fink, remains optimistic. In a recent interview with Fox Business, Fink stated that Ether’s potential designation as a security would not necessarily hinder the approval process.
Adding to the discourse, Ethereum infrastructure firm ConsenSys submitted a comment letter to the SEC on March 29, asserting that there is no substantial reason for the agency to reject a spot Ether ETF. ConsenSys highlighted Ethereum’s Proof of Stake (PoS) implementation, which it claims exceeds the security standards of Bitcoin’s Proof of Work (PoW) underlying approved Bitcoin-based ETFs.
The evolving dynamics surrounding Ethereum ETFs reflect the growing complexity of integrating cryptocurrencies into traditional financial frameworks, with stakeholders closely monitoring regulatory developments and industry sentiment.
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