Crypto News – Can Experts Accurately Predict Weak Futures-Spot Correlation for Ether ETFs?
Crypto News – Skepticism among specialists in the cryptocurrency business develops as the SEC approaches its judgment regarding Ethereum ETFs. Their concerns center on possible security vulnerabilities as well as the intricate connections between Ethereum futures and spot markets. The prospect of these ETFs receiving regulatory approval is lowered by this mistrust.
Experts Have Different Views on Potential Approval
A 19b-4 change in trading rules and an S-1 registration statement are required for any ETF launch, as stated by Nate Geraci, President of the ETF Store. Even yet, if 19b-4s are approved, there could still be delays in the process, particularly with S-1 clearances.
Strong questions over the approval of spot Ethereum ETFs were voiced by Bloomberg Intelligence ETF expert James Seyffart in a separate interview. The weak linkages between the spot and futures markets that were noted in 2021 were brought out by the speaker.
“The futures market hasn’t been sufficient on a 3-year look back period for detecting fraud and manipulation in the spot market,” Seyffart said, providing another justification for the SEC’s potential involvement. It’s crucial to remember that the agency was sued by massive digital asset manager Grayscale based on the same rationale. Seyffart stressed that this is only a conjecture, though. “When we see these 19b-4 orders and the SEC’s official correlation analysis data,” he said, a better date will become clear.
FAQ
Who is James Seyffart?
With a focus on the larger asset management sector and particular competence in the coverage of funds such as exchange-traded funds (ETFs), mutual funds, and hedge funds, Seyffart works as a research analyst for Bloomberg Intelligence.
What is 19b-4 Filing?
Covered self-regulatory organizations (SROs) file an SEC Form 19b-4 to notify the SEC of a rule modification. For public recordkeeping, the bylaws, rules, and regulations of several stock exchanges and financial regulatory organizations—many of which are SROs—must be submitted with the SEC.
What is an S-1 Filing?
The registration statement that domestic issuers must submit to the SEC in order to make new securities available to the public is Form S-1. In other words, for follow-on offerings of new securities and initial public offerings (IPOs), issuers file S-1s.
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