Spot Ether ETF Approval Speculation and its Impact on Altcoin Investors
“SEC Approval of Spot Ether ETF Could Pave the Way for Altcoin ETFs: What Investors Need to Know”
With the recent surge in optimism surrounding the approval of a spot ether ETF by the Securities and Exchange Commission (SEC), altcoin investors are eagerly anticipating the possibility of additional coins receiving approval for ETFs. The approval of a physically backed Ethereum ETP by WisdomTree in the UK has only added fuel to the fire, leading many to speculate on the potential for a wave of approvals for other crypto assets.
The bullish momentum for ether, with a 29% increase in value just this week, has heightened expectations for other cryptocurrencies. Reports from Bloomberg, the Wall Street Journal, and CoinDesk have all pointed to a significant shift in the SEC’s stance on a spot ether ETF, with the likelihood of approval now standing at 75%.
This sudden change in sentiment has caught many in the industry by surprise, with experts noting that the SEC’s request for amendments to a joint 19b-4 form is typically a positive sign for approval. If the SEC does indeed approve a spot ether ETF, the question on everyone’s mind is whether it will open the door for other altcoin ETFs.
While ether is just one of many altcoins currently traded on US stock exchanges via trusts, the possibility of additional altcoin ETF approvals hinges on the SEC’s classification of crypto assets as securities. While some trusts hold SEC-designated unregistered securities, others do not, potentially paving the way for future approvals.
It’s important to note that the SEC’s silence on the classification of certain crypto assets does not necessarily mean they are not considered securities. However, the presence of futures contracts on the Chicago Mercantile Exchange for only bitcoin and ether may influence the SEC’s decision to approve a spot ether ETF over other altcoins.
Despite the uncertainty surrounding altcoin ETF approvals, the recent surge in ether’s price and the SEC’s apparent shift in stance have instilled renewed optimism in the crypto market. As investors wait eagerly for a potential approval of a spot ether ETF, the possibility of further altcoin ETFs gaining approval is a tantalizing prospect for the future of the industry.
