Crypto News – How Can We Evaluate Coinbase Perspective on Ether ETF Approval?
Crypto News – Although there is a general consensus in the market that a spot Ethereum ETF won’t be approved anytime soon, Coinbase analyst David Han stated that the market may be underestimating the likelihood of one.
We think the market may be underestimating the timing and odds of a potential approval. Ether may yet have the potential to surprise to the upside in the coming months and does not appear to have major sources of supply-side overhangs such as token unlocks or miner sell pressure.
Han
Hope for ETF Approvals Diminishes
The SEC’s seeming silence with issuers has caused expectations of approval this month to significantly drop. Eric Balchunas, a Bloomberg ETF analyst, described the chances of approval as “slim to none.” As the justification for approving the spot Bitcoin ETFs—that is, the connection between the CME futures product and the spot exchange rates is high enough—also holds true for Ethereum, Coinbase stated that the creation of a U.S. spot Ethereum ETF is still a matter of “when, not if.”
Spot Ethereum ETFs with staking incentives are unlikely to be allowed anytime soon, according to Coinbase, in the absence of clear regulatory guidance on the matter. Remarkably, last week Ark Invest removed the staking part of its Ethereum ETF application.
That said, this shouldn’t impact the status of unstaked ether in our view,
Han
FAQ
What is Coinbase?
Coinbase is an American publicly traded company that functions as a cryptocurrency exchange platform. By trading volume, Coinbase is the largest cryptocurrency exchange in the United States.
Will the Ethereum ETF be Approved?
U.S. regulators probably won’t approve ETFs that give investors access to Ethereum in May, according to investment bank Standard Chartered, which had previously expected the SEC to give its blessing then.
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