Insights on Approval of Ethereum Spot ETFs in the U.S.
Lucas Kiely, the Chief Investment Officer for Yield App, recently discussed the potential approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in an opinion piece published by Cointelegraph on 23 January 2024.
Confidence in ETH Spot ETF Approval
Kiely acknowledged the approval of a Bitcoin spot ETF and believes that the approval of an Ether spot ETF is imminent, contrary to the prolonged process that surrounded the Bitcoin ETF.
Process for Approval
He mentioned that there are currently seven ETH spot ETF applications on the SEC’s desk, with VanEck’s application being the first in line with a deadline of 23 May 2024. Kiely believes that the market is confident about an approval in May due to the SEC’s proceedings on VanEck’s applications.
Potential Obstacles for Approval
Kiely also pointed out that the approval of an ETH product would pave the way for a variety of crypto-backed Exchange-Traded Products (ETPs), but liquidity might be the potential obstacle for an ETH spot ETF approval. However, he views this concern as a long shot and not significantly different from liquidity issues in equity markets.
Evolvement of Cryptocurrency in Traditional Finance
He believes that with the approval of the spot Bitcoin ETFs in the U.S., cryptocurrency has entered traditional finance and anticipates a full-scale institutional colonization of the cryptocurrency industry in the near future.
Hot Take
Lucas Kiely’s insights indicate a strong possibility for the approval of an Ether spot ETF in the U.S. in the near future, paving the way for further institutional participation in the cryptocurrency industry.
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