Has the Ethereum spot ETF made a decision? One article to understand

Entering May, the thing that attracts the most attention to investors must be the Ethereum spot ETF, especially the news that the Ethereum spot ETF was approved in May has been widely circulated, making the currency circle all the time. Are you following the Ethereum spot ETF decision? According to the latest notice, no resolution has been made. The main reason is that the U.S. Securities and Exchange Commission stated not long ago that it will postpone the decision on the Ethereum spot ETF to July 5, 2024. Next, the editor will talk about the approval process of this Ethereum spot ETF in detail.

Has the Ethereum spot ETF made a decision?

The Ethereum Spot ETF has not yet made a decision. According to PANews, the U.S. Securities and Exchange Commission (SEC) stated in a document released on May 6 that it will make a decision on the InvescoGalaxy Ethereum Spot ETF. The time has been postponed to July 5, 2024. "The Commission believes it is appropriate to specify a longer period for issuing an order approving or disapproving the proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised therein," the SEC said.

Just recently, a move by Grayscale, a well-known cryptocurrency asset management company, has once again focused the market’s attention on the intersection of cryptocurrency and traditional financial markets. In a somewhat surprising move, Grayscale suddenly withdrew its Ethereum futures exchange-traded fund (ETF) just three weeks before the U.S. Securities and Exchange Commission (SEC) made a decision on its spot Ethereum (ETH) ETF application. 19b-4 application.

This decision not only confused market observers, but also triggered widespread discussion in the financial community. After all, the SEC was about to make a decision on at least one Ethereum ETF spot application, but Grayscale chose to retreat at this critical moment. This undoubtedly poured cold water on those who had expectations for the cryptocurrency market.

From a market perspective, Grayscale’s decision to withdraw may be due to concerns about the regulatory environment. The SEC has always been more cautious about cryptocurrency-related products, and futures ETFs may face more stringent regulatory scrutiny than spot ETFs. In addition, as the SEC tightens its supervision of the cryptocurrency market, Grayscale may predict that it will be increasingly difficult to obtain approval for its futures ETF application.

On the other hand, Grayscale’s withdrawal may also be related to its own market strategy. Considering that the SEC is about to make a decision on the spot ETF application, Grayscale may believe that withdrawing the futures ETF application at this time can shift the market's attention more to spot ETFs, thus paving the way for its subsequent spot ETF applications.

What is Ethereum spot ETF?

The Ethereum Spot ETF is an investment fund listed and traded on a stock exchange with the goal of tracking the price performance of Ethereum. Unlike buying or holding ETH directly, investors can indirectly gain exposure to ETH price fluctuations by purchasing shares of the Ethereum spot ETF without having to manage or store ETH. In this way, investors can avoid some of the risks and obstacles associated with direct trading of ETH, such as security, digital wallets, regulatory uncertainty, lack of liquidity, etc.

Simply put, the Ethereum spot ETF is an investment fund listed and traded on a stock exchange that directly holds Ethereum as the underlying asset to track the price performance of Ethereum. This investment method provides investors with a convenient and safe way to participate in the cryptocurrency market without having to worry about security and digital wallets.

It can also be said that it allows investors to more easily access Ethereum, an innovative and potentially huge crypto asset, without needing to master complex technical knowledge or face high transaction costs. Additionally, because the Ethereum spot ETF trades on traditional stock exchanges, it is also subject to stricter regulatory and transparency requirements, increasing investor confidence and protection.

The application for an Ethereum spot ETF was made in the context of a Bitcoin spot ETF. The Bitcoin spot ETF is an ETF that tracks the price of Bitcoin. Its application has gone through years of setbacks and delays. Until January 11, 2024, the U.S. Securities and Exchange Commission (SEC) finally approved the listing and trading of 10 Bitcoin spot ETFs. This is a historic breakthrough for the cryptocurrency market and opens the door to ETF applications for other cryptocurrencies.

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