What comes after the spot ether ETF approvals? Execs weigh in.
Following the adoption of spot ether exchange-traded funds (ETFs), experts discussed the development at X Spaces in a session hosted by Cointelegraph.
On May 23, the United States Securities and Exchange Commission (SEC) approved 19b-4 filings from Ether (ETH) ETF applicants, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise.
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Following the approval of the Ether ETF, Cointelegraph Managing Editor Gareth Jenkinson hosted X Space with Bloomberg analyst Eric Balchunas, VanEek Head of Digital Assets Research Matthew Siegel, Consensys Director of Global Regulatory Affairs Bill Hughes, and Animoka Brands Co-Founder Yat Siu.
What comes after the spot Ether ETF is approved?
After the approval of the spot ETH ETF, Balchunas expects a similar situation with the spot Bitcoin (BTC) ETFs. The analyst said that the same issuers will start on the same day as a “carbon copy horse race”.
Despite the similarities to the spot's BTC ETFs, Balchunas believes ETH ETFs may have smaller volumes.
“Everything you've seen with bitcoin, I'd like to see a lot of similarities, except for dividing it by 10. So you could have $1 billion or $2 in the first two weeks. I don't see those as big.”
While the analyst doesn't think the space for ETH ETFs will be as big as Bitcoin's, Balchunas says traders can make interesting moves. “You can see people shorting ETFs and buy ETH because you can use it.”
Meanwhile, Siegel, who works with one of the ETF issuers, said they're going to go out there and make a “very strong investment case” for Ethereum. The VanEck executive highlighted that they have been working with their team to find the ideal mix of Bitcoin and Ethereum and will release their analysis soon.
Siegel also believes there are many technology and equity investors looking for assets with intrinsic value. The executive said these investors may not be aware of Ethereum and its “prominent, decentralized application (DApp) ecosystem.”
The US does not want to play “second fiddle”.
Siu, who works with the Hong Kong government to promote Web3 development in the special administrative region, said the community expects more developments as America begins to compete in crypto and Web3.
On April 15, the Hong Kong Securities and Futures Commission (SFC) approved the first spot BTC and ETH ETFs. With the US and Hong Kong spot approving BTC and ETH ETFs, the executive believes other jurisdictions may begin to consider having their own crypto-based exchange-traded funds. He explained.
“Now that the US has adopted it, other countries around the world like the UK, Singapore, Japan or the Middle East, like Dubai, I think they're all looking at it and saying, ‘OK, we have to do it. Have our own version of this space ETF.'
With jurisdictions around the world jumping into crypto ETFs, Siu believes the US doesn't want to be left behind. I think the US definitely doesn't want to play second player to anyone.
As a result, the executive believes there will be more exciting developments ahead as there is a “turning tide of sentiment” in the United States.
Related: Is Ethereum a Security, Currency or Commodity?
A lawyer on ether as a commodity
While the SEC doesn't explicitly state that ETH is a commodity, Hughes believes that spot ETF approvals implicitly acknowledge that it is. However, the Consensus attorney said the SEC needs to be clear about the implications of the rulemaking. He explained.
“These legislative changes, that is, from our point of view, are serious. We must be clear and transparent about the implications of such a thing beyond the law itself.
Additionally, while the ETF's approval is hailed as a victory for cryptocurrency, advocates are skeptical that the SEC will take a more liberal stance on crypto-related issues in the future.
However, Hughes also suggests that this development may highlight the “tension in legal concepts” that the SEC has been “improving” to explain their enforcement actions.
Magazine: Godzilla vs. Kong: The SEC faces a tough battle with crypto legal firepower
