The Securities and Exchange Commission (SEC) of the United States of America has recently approved more Exchange-traded funds (ETFs) that invest in ether. In addition to ProShares’ Ethereum ETF, Grayscale’s tiny Ethereum exchange-traded fund (ETF) was granted permission. The trading of these funds is set to begin the following week, joining the number of other spot Ether ETF offers that are currently available.
The Ethereum exchange-traded fund (ETF) that Grayscale will launch will utilize assets from its larger Ethereum ETF, which will make it more accessible and affordable. In addition to that, they provide a miniature Bitcoin exchange-traded fund (ETF) that has lower fees in comparison to their core Bitcoin product.
The plan that Grayscale is implementing to transform its existing Ethereum Trust into a spot Ethereum exchange-traded fund (ETF) is significantly impacted by this authorization. At the moment, their Ethereum Trust operates inside of a closed-end fund, which makes the process of redeeming shares more difficult.
As a result of the SEC’s approval of requests by BlackRock, Grayscale, and a number of other asset managers to establish spot Ethereum exchange-traded funds in May, many people were taken aback.
According to James Seyffart, an ETF analyst at Bloomberg, the tiny fund ought to be able to assist in the management of projected outflows that are a result of Grayscale’s conversion of the larger fund. It was predicted by Seyffart that all of the funds will participate in trading the following week, on July 23. SEC Chairman Gary Gensler has played a crucial role in the regulatory conflict that has arisen about cryptocurrencies.
A strict attitude has been adopted by the Securities and Exchange Commission (SEC) under the leadership of Gensler. This posture asserts that many digital assets, including certain cryptocurrencies, should be managed as securities. The consequence of this is that numerous cryptocurrency organizations and exchanges have been subjected to a greater level of scrutiny and enforcement proceedings. The Securities and Exchange Commission (SEC) granted approval for exchange-traded funds (ETFs) for Bitcoin earlier in 2024, and then for Ethereum ETFs a few months later.
SEC’s Crypto Authority Challenged Amid Legal Battles and Industry Backlash
The Securities and Exchange Commission is now involved in a number of legal battles with companies relating to cryptocurrencies. The agency has been successful in a number of cases against big industry actors, which has strengthened its standing and demonstrated its authority to oversee the cryptocurrency market.
The activities of Gensler have been subjected to significant criticism from the cryptocurrency industry as well as from certain political figures. An entrepreneur by the name of Mark Cuban has filed a petition to have Gensler removed from his position, alleging that his practices make it difficult for cryptocurrency companies to comply with clear rules. Gensler has been criticized by a number of influential figures in the sector of regulating through the use of enforcement and litigation rather than giving comprehensive standards.
Legislators have been advocating for proposals that would reduce the regulatory authority that the Securities and Exchange Commission (SEC) has over cryptocurrencies and instead provide more jurisdiction to other organizations, such as the Commodity Futures Trading Commission (CFTC). The United States Congress, on the other hand, has shown opposition to similar ideas.
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