Ethereum

BlackRock

<p>Contrary to rumors suggesting a politically motivated decision by the SEC to approve spot Ether ETFs, Bernstein analysts believe that the regulator acted instead to avoid potential legal litigation. This decision seems to give a major boost to the crypto industry.</p>
<h2 id="h-a-decision-based-on-legal-considerations-rather-than-political-ones">A decision based on legal considerations rather than political ones</h2>
<p>Analysts Gautam Chhugani and Mahika Sapra of Bernstein challenge the theory of a political maneuver by the Democrats behind the <a href="https://www.cointribune.com/en/the-approval-of-ethereum-etfs-is-going-to-change-everything/" target="_blank" rel="noopener noreferrer nofollow">SEC’s approval of Ethereum ETFs</a> ahead of the midterm elections.</p>
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<p>According to their <a href="https://cointelegraph.com/news/sec-ethereum-etf-approval-not-politically-driven-bernstein" target="_blank" rel="noopener noreferrer nofollow">report</a>, the SEC knew it couldn’t reject the Ether ETF applications given the similar regulatory structure to the previously approved Bitcoin ETFs.</p>
<p>With Ether futures products listed and a close correlation between spot and derivative markets, rejecting the Ether ETFs would have exposed the SEC to potentially unfavorable litigation. The presidential veto on the repeal of a key accounting bulletin by the authority supports this hypothesis of a purely regulatory decision.</p>
<p>“<em>The SEC no doubt adopted a pragmatic approach to avoid a judicial clash</em>,” the analysts conclude, pointing out the candidates’ own surprise at the unexpected green light.</p>
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<h2 id="h-a-major-development-despite-timid-beginnings">A major development despite timid beginnings</h2>
<p>While Bernstein welcomes this major advancement for the crypto industry, the firm tempers initial expectations. Compared to the highly popular <a href="https://www.cointribune.com/en/triumph-express-of-bitcoin-etfs-1500-institutional-investors-take-the-plunge-in-three-months/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETFs</a>, the new index products on Ether are expected to attract less capital at first.</p>
<p>However, analysts foresee “pent-up demand from the same institutional investors” and an <a href="https://www.cointribune.com/en/crypto-ethereum-defies-gravity-in-2024-with-6000-in-sight-before-the-summer/" target="_blank" rel="noopener noreferrer nofollow">appreciation in the price of Ether</a> before its actual launch. A positive outlook that confirms the importance of this milestone for the sector.</p>
<p>The final step will be the SEC’s approval of the registration statements filed by issuers such as VanEck, <a href="https://www.cointribune.com/en/blackrock-buys-10-million-of-ethereum-to-launch-its-etf/" target="_blank" rel="noopener noreferrer nofollow">BlackRock</a> or Fidelity.</p>

Crypto: SEC May Approve Ether ETFs to Avoid Legal Showdown

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