After the recent approval of Ether exchange-traded funds (ETFs), industry experts gathered for a discussion hosted by Cointelegraph on X Spaces. The United States Securities and Exchange Commission (SEC) approved the 19b-4 filings from various ETH ETF applicants, including well-known names like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
Following the ETF approval, Cointelegraph Managing Editor Gareth Jenkinson conducted an X space session with Bloomberg analyst Eric Balchunas, VanEck’s head of digital assets research Matthew Sigel, Consensys’ director of global regulatory matters Bill Hughes, and Animoca Brands’ co-founder Yat Siu.
What’s next after the approval of spot ETH ETFs? Balchunas predicts a scenario similar to what happened with spot Bitcoin ETFs, describing it as a “carbon copy horse race” where the same issuers would launch on the same day. However, Balchunas believes that the ETH ETFs might have lower trading volume compared to their Bitcoin counterparts.
While the spot ETH ETFs may not be as popular, Balchunas suggests that traders might still make interesting moves. For example, they could short the ETF and buy ETH because ETH can be staked.
On the other hand, Sigel, representing one of the ETF issuers, stated that they will present a compelling investment case for Ethereum. The VanEck executive mentioned that they’ve been working on analyzing the ideal mix of Bitcoin and Ethereum and will release their findings soon.
Sigel also believes that there are many tech and equity investors who are looking for assets with intrinsic value. He emphasized that these investors may not be aware of Ethereum and its vibrant decentralized application (DApp) ecosystem.
Siu, who collaborates with the Hong Kong government to promote Web3 development, expects more developments as the US competes in the crypto and Web3 space. Hong Kong’s Securities and Futures Commission (SFC) had previously approved its first spot BTC and ETH ETFs on April 15. Siu believes that other jurisdictions might also consider introducing their own crypto-based ETFs, given the approvals in the US and Hong Kong. He stated that the US does not want to be left behind and is determined to be a leader in the space.
While the SEC did not explicitly state that ETH is a commodity, Hughes believes that the approval of spot ETFs implies it. However, the Consensys lawyer urges the SEC to be transparent about the implications of its rulemaking.
Despite the ETF approvals being seen as a victory for the cryptocurrency industry, Hughes remains skeptical about whether the SEC will adopt a more lenient approach to crypto-related matters in the future. He suggests that this development could highlight tensions in the legal theories that the SEC has used to justify its enforcement actions.
In conclusion, the approval of spot ETH ETFs marks a significant milestone in the cryptocurrency industry, and experts anticipate further developments in the US and other jurisdictions.