Ether ETFs via Keyrock’s kaleidoscope
While the approval of spot ether exchange-traded funds (ETFs) has yet to be decided, it is far from a “done deal,” Kevin de Patol, CEO of digital asset market maker Keyrock, told Cointelegraph in an exclusive interview in February. 23.
“I think they are more likely to adopt the Ether ETF. The probability is definitely more than 50%. I think it's not perfect. “
Ether (ETF) has taken center stage in the cryptocurrency industry after wealth management firm Bernstein recently suggested that Ether may be the only other cryptocurrency to receive an ETF this year. Bernstein predicts a 50% chance of adoption of Ether ETFs by May 2024.
Investment banking firm JPMorgan sees a 50% chance of the Ether ETF being approved in May, and Bloomberg senior ETF analyst Eric Balchunas predicts a 70% chance of approval. Polymarket odds predict a 42% chance of ETF approval by the end of May.
Keyrock's de Patoul expects more challenges ahead of Ether ETF certification, similar to the challenges of getting Bitcoin (BTC) ETFs accepted in the United States.
One of the primary concerns is that Securities and Exchange Commission Chairman Gary Gensler may designate Ether as a security. In previous congressional hearings, Gensler has refused to answer whether or not it views Ether as a security risk, although former SEC division director William Hinman dismissed the idea during a 2018 speech.
According to de Patol, Ether does not include security, but the introduction of a share product following last year's merger could make Ethereum look like a security offering from the SEC's perspective if it moves to a share-proof agreement model.
Interest in Ether ETFs reversed on February 20th after Ether breached the $3,000 psychological price level for the first time in 22 months.
According to Keiroc de Patol, Ether's recent price action is mainly driven by a compounded effect of excitement surrounding the ATAF and the upcoming Denkon reform.
“Denkun's upgrade will make the network better by improving scalability and reducing gas fees, creating more value for Ethereum, which translates into positive price action.”
Related: Ether ETF Decision: Gensler Remains Mute
