Spot Ether ETFs will come down to a 5-person vote: Gensler the decider?
The concept of a spot ETF is not new to the crypto world, with Bitcoin recently breaking ground in this arena. But what exactly is a spot ETF, and why is it causing such a stir in the Ethereum community? In this article, MPost will dive deep into this topic.
An exchange-traded fund, or an ETF, gives investors exposure to an asset class without requiring them to own it directly. Regarding Ethereum, it would allow people and organizations to purchase Ether, the native cryptocurrency of the Ethereum network, via a regulated financial instrument that is exchanged on conventional stock markets.
For the second-largest cryptocurrency by market value, the possible approval of Ethereum spot ETFs might be a major turning point. For people who might be reluctant to handle digital wallets or negotiate the complexity of cryptocurrency exchanges, it would offer a more approachable and familiar investing instrument. With more people having access to it, ether’s value may rise, and adoption may increase.
The whole cryptocurrency world is holding its breath as they await the decisions of the five SEC commissioners on VanEck’s proposal for a spot Ether ETF. The vote, which is set for May 23, 2024, is similar to the one that was held in January 2024 and saw spot Bitcoin ETFs approved by a slim 3-2 margin. Many are guessing as to how each commissioner would vote this time around given the parallels between these two rulings.
In the world of digital assets, Hester Peirce—fondly referred to as “Crypto Mom”—has continuously pushed for further decentralized technology integration inside the larger financial system. Her attendance at conferences such as ETHDenver implies that she has a positive opinion of Ethereum. Although she hasn’t clearly stated how she plans to vote on the spot, Ether ETFs, her prior remarks and actions point to a probable yes vote.
Caroline Crenshaw, a prominent opponent of the crypto sector, is at the other extreme of the political spectrum. Crenshaw’s opposition to the spot Bitcoin ETF decision stemmed from worries about market manipulation and fraud in the larger cryptocurrency space. Her position highlighted the absence of systemic control and controls to identify and prevent fraud in crypto marketplaces. It doesn’t seem plausible that Crenshaw’s opinion on spot Ether ETFs would change much, given her prior stance.
Mark Uyeda has expressed disapproval of the SEC’s enforcement-based regulation of the cryptocurrency market despite having voted in favor of spot Bitcoin ETFs. But he expressed “strong concerns” over the commission’s decision-making process in light of his approval. Uyeda’s vote on the spot on Ether ETFs is still up in the air because it’s unclear if the same independent factors that swayed his choice about Bitcoin ETFs will apply here.
Opponent of spot Bitcoin ETFs Jaime Lizárraga has voiced doubts about cryptocurrencies fulfilling their promise of financial inclusion. His opinion that the majority of cryptocurrencies are operating unlawfully and are thus subject to U.S. securities regulations raises the possibility of a vote against spot Ether ETFs. Like his colleagues, Lizárraga’s choice is still up in the air.
As for the Ether prediction, Gensler’s stance remains unclear, with the SEC chair recently avoiding direct answers about Ether’s status as a security. The potential approval of spot Ether ETFs has sparked intense speculation about the future ETF price prediction and its impact on the broader cryptocurrency market.
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He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.
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He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.
