The success of spot Bitcoin ETFs inside simply two months of launch has clearly irked some lawmakers within the U.S. On Thursday, March 14, Senator Reed and Senator Butler wrote to the U.S. Securities and Exchange Commission (SEC) urging them to chorus from approving extra Exchange-Traded Products (ETPs) for various tokens past Bitcoin. Indirectly, the lawmakers have been pushing the SEC to disclaim the spot Ethereum ETF that has been not too long ago into consideration.
The success of the BTC spot merchandise clearly ruffling some feathers on the Hill. @SenatorJackReed and @Senlaphonza write to the @SECGov urging:
-no additional ETPs for different tokens
-make life troublesome (i.e. examinations/evaluations) for brokers and advisers that advocate BTC ETPs pic.twitter.com/enxdumC02N— Alexander Grieve (@AlexanderGrieve) March 14, 2024
ETH Is More Liquid Than Most S&P 500 Stocks
Paul Grewal, Chief Legal Officer at Coinbase, respectfully responds to Senators, offering proof that contradicts their assertions. He highlights that their evaluation has been shared with SEC employees and provides to debate it with them or every other policymakers in search of clarification.
Grewal emphasizes that many digital asset commodities, not restricted to Bitcoin, exhibit market high quality metrics that surpass even the most important traded equities. For occasion, Ethereum’s (ETH) spot market is characterised by depth and liquidity, with solely two S&P 500 shares boasting greater notional greenback buying and selling volumes. Moreover, just one S&P 500 inventory has decrease adjusted bid-ask spreads than ETH.
In comparability to Bitcoin, Grewal factors out that ETH’s futures and spot markets show the identical excessive and constant correlation, which facilitates market surveillance. This underscores the robustness and reliability of Ethereum’s market infrastructure.
Leading Ethereum contributor Anthony Sassano argues that no matter private emotions in direction of Ethereum (ETH) or the need for it to have an ETF, people ought to oppose this growth. He highlights that many policymakers view all cryptocurrencies as the identical entity, resulting in potential implementation of unfavorable insurance policies affecting the complete crypto trade. Sassano emphasizes the significance of advocating towards such actions to stop detrimental outcomes for all cryptocurrencies, irrespective of non-public preferences.
Even in the event you hate ETH and do not wish to see it get an ETF, you ought to be pushing again on this
“Crypto” is all in the identical bucket for these boomers so they’ll deal with it as such and attempt to advance actually unhealthy coverage round all of crypto – not simply the cash you personally hate https://t.co/RW86D1YmE2
— sassal.eth/acc 🦇🔊 (@sassal0x) March 15, 2024
Spot Ethereum ETF Can Outpace Bitcoin ETFs
As not too long ago reported, the optimism surrounding the spot Ethereum ETFs has been waning amid the strain from the lawmakers. However, VanEck revealed a report on Thursday, March 14, stating that spot Ether ETFs could possibly be really larger than Bitcoin ETFs. VanEck Portfolio Manager Pranav Kanade stated:
“From a market perspective, part of me believes that the market size for a spot ETH ETF is potentially as big if not bigger than the spot bitcoin ETFs. The world of investors who are looking for cash producing assets is massive and ETH obviously generates fees that goes to the token holders. Even if you don’t have an ETF that can offer staking as a part of it, it’s still a cash producing asset, so I think ETH could make more sense as an asset to more people than Bitcoin does.”
With Ethereum’s Proof of Stake, ETH holders can earn yield by staking on the blockchain. Coinbase provides round a 3% yield for ETH stakers. However, SEC approval for spot ETH merchandise is unsure. Bloomberg analysts now estimate a 30% probability, whereas Kanade suggests it’s nearer to 50%.
The offered content material might embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability to your private monetary loss.
