The U.S. Securities and Exchange Commission (SEC) has approved a Bitcoin ETF, sparking new hopes of Ethereum ETF approval. Many investment funds have applied for registration and are under review, SEC approval of Ethereum ETF could boost the attention of traditional finance users, and increase the price of ETH as well as appeal Institutional investors want to diversify their portfolios with this unique asset class.
What day for Ethereum ETF approval?
What is Ethereum ETF?
Ethereum ETF (also known as Ethereum Exchange Traded Fund) is a group of assets linked to the price of ETH that are bought, sold, securitized or traded by companies on traditional exchanges instead of cryptocurrency exchanges.
The purpose of the Ethereum ETF is to provide access to investors who do not want to invest in cryptocurrency without having to own them.
Situation about Ethereum ETF
On January 12, 2024, SEC Chairman Gary Gensler just confirmed that the commission only accepts spot ETFs for Bitcoin, not any other cryptocurrencies, including Ethereum.
In an interview on CNBC, Mr. Gensler discussed decided to approve 11 Bitcoin ETF proposals and concerns about the Ethereum ETF. He clarified that the decision only applies to Bitcoin because it is a commodity. He also held a firm negative view on Bitcoin ETF being approved.
Gensler, who once taught about blockchain, continued that progress in the crypto industry lies only in distributed ledger systems. Regarding the possibility of approval of an Ethereum spot ETF, he did not give a clear answer, only emphasizing that the new decision only concerns Bitcoin and that the recognized asset is not a security.
Mr. Gensler also hinted that the prospects for the Ethereum spot ETF are not high, as in the opinion of the SEC, Bitcoin is a commodity, while other cryptocurrencies, including Ethereum, are securities. As of this moment, The SEC has approved the first batch of Ethereum futures ETFs in October 2023.
Bitcoin ETF approval has changed crypto investment sentiment, but the possibility of Ethereum ETF approval remains a question mark. However, on the evening of January 12, BlackRock CEO Larry Fink commented that the emergence of Ethereum ETF will bring additional value to the market.
BlackRock and the organizations that are filing an Ethereum spot ETF application with the SEC include, ARK Invest, Grayscale, Hashdex, Invesco, and Fidelity, with the final deadline for the first proposal being May 2024.
Currently, there are seven ETH ETF applications under review by the SEC. The deadline for a decision belongs to the VanEck family, which is May 23, 2024. Over the next few months, we will get more clues when the SEC responds to ETH ETF applications, just like they did with Bitcoin.
Crypto firm Terraform Labs files for bankruptcy in US after $40B crypto crash
Terraform Labs, the cryptocurrency company behind Luna and TerraUSD tokens, which suffered a crash resulting in an estimated loss of US$40 billion in 2022, has officially filed for bankruptcy in the U.S. The Singapore-based firm submitted its bankruptcy application to a court in Delaware on Sunday, as reported by The Straits Times.
The purpose of this filing is to allow the company to continue its operations and support the Terra community and ecosystem, according to Terraform Labs. The firm emphasized its commitment to meeting all financial obligations to its employees and vendors throughout the bankruptcy proceedings without requiring additional funding.
In court documents, both the assets and liabilities of the company were listed in the range of $100,000-500,000.
Notably, just days before the bankruptcy filing, the U.S. Securities and Exchange Commission (SEC) agreed to postpone the trial against Terraform Labs and its co-founder, Do Kwon, as reported by Reuters. The SEC lawsuit attributed the collapse of the two cryptocurrencies in 2022, resulting in an estimated $40 billion loss, to Terraform and Kwon.
Do Kwon is currently detained in Montenegro after being arrested for attempting to leave the country with a fake passport in March of the previous year.
Also read: CRYPTO MARKET REVIEW IN 2023 AND NARRATIVES IN 2024