Ethereum ETF and it’s impact on crypto

The story of crypto and ETF’s

Crypto related ETF’s have been a widely discussed topic in the past few months. With Bitcoin ETF’s being approved earlier this year, it set a precedent for the approval of ETF’s for other cryptocurrencies. At that point, speculation on an Ethereum ETF was already circulating, with players like Grayscale already trying to push their Ethereum ETF as early as last December. Back then, the SEC delayed its decision, as per analysts’ expectations. This was followed by more delays in February, after the Bitcoin ETF approval, with the agency stating that approving the Bitcoin ETF doesn’t mean anything for other ETF’s. But what nobody can deny is that at that point, the precedent was already set.

Comparisons with Bitcoin ETF’s approval timeline quickly ensued, with some speculating Ethereum could take more or less the same time. Analysts compared not only the full timeline, but also the timeframes for the S-1 applications (which is the initial registration form) and the 19B-4 filings (exchange requests to list the ETF). While past performance doesn’t indicate future results, this set people’s sights on May 23rd as a possible date for SEC approval.

Discussion on the topic has been ongoing in the past weeks. Some are taking a bearish stance on the approval, basing their views on the fact that elections and a change of administration at the SEC may impact approval, the fact that Ethereum is different from Bitcoin and that there could even be a reversal on the SEC’s stance regarding Ethereum being a security. Others suggest that the SEC may be incentivized to approve these ETF’s and that they’re even participating in conversations with players like Ark Invest to optimise applications for easier approval, suggesting things such as removing staking proposals.

Talks on an Ethereum ETF gained steam once more this week with some stating that approval was highly likely in the coming days. Coindesk further fueled this rumour stating exchanges were asked by the SEC to turn in 19B-4 filings as soon as possible. Reuters corroborated and provided further information on this the following day. All of these news and increased optimism on the approval of these ETF’s prompted a surge in Ethereum’s price.

Why’s this important?

While ETF’s aren’t relevant for either the Bitcoin or Ethereum networks themselves, nor for their development, they still play their role. One of the main advantages is making the general public aware that the crypto-sphere exists and that it’s a trustworthy environment. The other is facilitating additional cash flows into crypto.

While as blockchain natives, we strive for everyone to learn self-custody, we do still see the ETF’s as something important, especially at an institutional level.

Where do we stand?

Expectations are high, and it seems fairly certain the market will follow whatever decision is made regarding the ETF. We now patiently stand by for updates, with a decision seemingly being made later this week, towards the 23rd/24th of May. Even if these ETF’s don’t get approval now, there’s a chance they may be approved later this year. And whatever the outcome, AmaZix is here to lead the inevitable discussions that’ll ensue in your community based on the decisions the SEC makes! Reach out to us to learn how to harness the potential of your community.