tl;dr
The spotlight has shifted to Ethereum (ETH), with its price outshining Bitcoin, as attention turns to the potential approval of a spot Ethereum ETF in May 2024. Coinbase supports Grayscale's proposal for a spot Ethereum ETF, emphasizing that Ethereum should be treated as a commodity, not a security....
The spotlight has shifted to Ethereum (ETH), with its price outshining Bitcoin, as attention turns to the potential approval of a spot Ethereum ETF in May 2024. Coinbase supports Grayscale's proposal for a spot Ethereum ETF, emphasizing that Ethereum should be treated as a commodity, not a security. However, S&P Global warns of concentration risks associated with ETF approval. Despite market volatility, there is growing demand for Ether-related exposure among institutional investors.
The world’s second-largest cryptocurrency Ethereum (ETH) takes center stage as attention shifts largely from the spot Bitcoin ETF to the spot Ethereum ETF, scheduled to come in May 2024. Since the beginning of 2024, Ether has surged 30% against Bitcoin’s 22% gains.
In response to the U.S. SEC, Coinbase has addressed the approval request for Grayscale’s Ethereum spot ETF listing application. The application aims to transform the Grayscale Ethereum Trust into a spot Ethereum ETF. Paul Grewal, the chief legal officer at Coinbase, emphasized in the letter that both before and after the Merge, regulatory bodies such as the SEC and the CFTC have treated ETH as a commodity rather than a security.
Grayscale is popular for its pivotal role in pushing forward the spot bitcoin ETFs, paving the path for major financial players like BlackRock and Fidelity to offer bitcoin exposure to their clientele. During a panel discussion on bitcoin, Dave LaValle, Grayscale’s head of ETFs, expressed cautious optimism about the approval prospects, estimating a 50% chance of approval by May.
Analysis from S&P Global Ratings suggests that the approval of proposed Ethereum ETFs in the U.S., particularly those incorporating staking, may heighten Ethereum’s concentration risk. S&P analysts Andrew O’Neill and Alexandre Birry emphasized the critical need to understand concentration risks associated with ETF issuers’ choices.
The Ethereum (ETH) price surged past $3,000 on Wednesday, however faces some pullback amid the broader market sell-off. Stefan von Haenisch, head of trading at OSL SG Pte in Singapore, anticipates Ether to maintain its lead over Bitcoin in the upcoming months. Furthermore, the open interest in CME Group’s Ether futures market is nearing a record high, signaling a growing demand for Ether-related exposure among institutional investors in the derivatives sector.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.