Grayscale and BlackRock
ARK Invest has proposed a surveillance sharing agreement with Coinbase, similar to their previous suggestion in the Bitcoin spot ETF application. This proposal influenced the prices of Bitcoin (BTC) and Ethereum (ETH), with BTC rising to $25,900 and ETH reaching $1,655. However, these assets quickly returned to their pre-announcement values.
SEC Yet to Approve Any Ethereum ETFs
The SEC has favored futures-based ETFs for Bitcoin, citing the investor protections provided by the CME futures market. This has led to resistance in approving a Bitcoin spot ETF. However, the crypto industry is closely watching developments in the ETF space. The SEC has yet to approve any Ether ETFs due to Ethereum’s higher price volatility and regulatory uncertainties compared to Bitcoin.
Recent events have prompted fund managers to submit applications for Bitcoin spot ETFs and Ether futures ETFs after Grayscale’s court victory. Grayscale appealed the SEC’s decision to reject its spot BTC ETF and won.
Crypto Industry Optimistic About Spot BTC ETF Approval
Bloomberg ETF analyst James Seyffart predicts that the SEC’s decision on Ark Invest and VanEck’s ETF applications will likely be announced by May 23, 2024. This aligns with the deadlines for multiple Bitcoin spot ETF applicants, expected between March 15 and March 19.
The outcome of these ETF applications may be influenced by how the SEC responds to Grayscale’s spot Bitcoin ETF bid after their recent court victory. Grayscale argues that there is no longer a justification for favoring futures-based Bitcoin ETFs over spot ETFs, highlighting the potential benefits for investors.
According to Felix Shipkevich, founder of Shipkevich PLLC, the SEC is likely to approve a spot Bitcoin ETF following the recent court ruling.
Hot Take
The crypto industry eagerly awaits the SEC’s decision on Bitcoin spot ETFs and Ether ETFs. The outcome will have significant implications for investors and the overall market. With recent court victories and growing optimism, there is hope that the SEC will approve a spot Bitcoin ETF and open up new investment opportunities in the crypto space.
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