The US Securities and Exchange Commission (SEC) approved applications for spot Ether ETFs on May 23rd, marking a significant step for the cryptocurrency industry. However, the approval process for these Ether ETFs differed from the one for spot Bitcoin ETFs earlier this year.
Key Points:
Spot Bitcoin vs. Spot Ether Approval: Spot Bitcoin ETFs were approved by a vote of the entire SEC commission, including chairman Gary Gensler. Conversely, the go-ahead for Spot Ether ETFs came from the SEC's Trading and Markets Division.
Delegated Authority: The official announcement mentioned "delegated authority," implying a pre-determined approval process for Ether ETFs within the Trading and Markets Division.
Industry Reactions: Some market analysts like James Seyffart from Bloomberg view this as a normal procedure. However, others on social media platforms like X suspect this method was used to avoid public scrutiny of individual commissioner votes.
Potential Delays: Unlike Bitcoin ETFs, which began trading immediately after approval, Spot Ether ETFs might take weeks or months to debut. This is because they still require S-1 registration, which is a separate approval process.
Why the Discrepancy?
The reasons behind the different approval processes remain unclear. Some speculate it could be due to:
Political Considerations: The upcoming US elections and potential political pressure might have influenced the approach.
Focus on ESG (Environmental, Social, and Governance) Rules: The SEC might be prioritizing implementing new ESG regulations.
The Road Ahead for Spot Ether ETFs:
While the approval is a positive development, investors need to be patient. Spot Ether ETFs won't be available for trading immediately and could face delays depending on the S-1 registration process.
This story highlights the evolving regulatory landscape surrounding cryptocurrencies in the US. While progress is being made, a clear and consistent approach to approvals might be needed to improve transparency and predictability for the industry.
Disclaimer:
We are not financial advisors: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.
Source: Investing.com
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