Now under SEC scrutiny, Ethereum spot ETFs--promoted with flying colors as Bitcoin?
After the green light of the BTC spot ETFs, and their unexpected success, now the proposal for the same spot ETFs on Ethereum is in gestation.
Let's see together what the situation is shaping up to be and what concerns the president has about it.
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), continues to deliberate on the approval of Ethereum (ETH) Spot ETFs, refraining from providing specific details or timelines, echoing the approach taken with Bitcoin (BTC) Spot ETFs. The SEC recently postponed its decision on the fate of ETFs from Invesco and Galaxy, as well as those from major players like Grayscale, Fidelity, and BlackRock.
Meanwhile, the demand for approval of Ethereum Spot ETFs is on the rise, with additional asset management firms such as VanEck, Hashdex, and Franklin Templeton seeking approval. Despite this, Gensler remains cautious about ETF approval, citing concerns about the association between Bitcoin and illicit activities, lack of adequate surveillance on many cryptocurrency exchanges, and the prevalence of fraud and manipulation in the crypto space.
Gensler emphasized the SEC's commitment to impartiality and neutrality as long as companies adhere to the law. Amidst the uncertainty surrounding Ethereum Spot ETF approval, there has been renewed investor interest in ETH staking. Ethereum's network has witnessed a surge in the number of validators looking to stake their ETH, with over 7,045 validators representing more than 225,000 Ether, the highest level since October 2023. However, due to Ethereum's limits on the number of new validators entering the network per epoch, backlogs occur when multiple parties attempt to participate.
Validators, who stake a minimum of 32 Ether in the network, participate in executing Ethereum's proof-of-stake consensus mechanism, receiving a steady yield similar to fixed-income instruments like bonds in exchange for staking their Ether.
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