Ethereum ETFs: A Game-Changing Development in the Crypto Market - COINTURK NEWS
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Ethereum ETFs: A Game-Changing Development in the Crypto Market

12:23 pm (62 days ago)
October 3, 2023

Last week witnessed significant developments in the world of ETFs. Following the approval from the SEC, Ethereum ETFs were launched and trading began in the United States. While expectations for Bitcoin continue, this development in Ethereum may indicate a change in the SEC’s perspective on ETH. As of yesterday, trading commenced for nine Ethereum futures ETFs. However, contrary to the excitement, interest and volume were low.

The Current Status of Ethereum ETFs

Brian Quintenz, a former CFTC Commissioner, drew attention to the approval of Ethereum ETFs. He emphasized that this move by the SEC may indicate a change in its perception of ETH and its definition as a security. Quintenz stated:

By approving ETH ETFs based on commodity futures contracts, the SEC has officially provided clarity on the non-security status of ETH.

It is known that futures ETFs are supported by futures contracts on the Chicago Mercantile Exchange and are not based on physical assets. In contrast to its strict policies and thoughts on Bitcoin ETFs, the SEC displayed a more flexible approach regarding the approval of ETH ETFs. However, when it comes to spot transactions, no approval has been granted yet.

Brian Quintenz added the following statement on the matter:

It is ridiculous and demeaning for it to take this long to get here, but it is a great gain for the crypto space and, more importantly, the future of the internet.

Quintenz’s statements garnered significant support from those who oppose classifying Ethereum as a security. While all these events unfolded, Ethereum has not been definitively classified by the SEC.

Tom Dunleavy, the CIO of MV Capital, had a rather negative view on Ethereum ETFs. He made the following statement:

The only thing that matters is the spot purchase facilitated by a spot ETF because these funds need to be seeded. Futures ETFs do not facilitate this hidden demand.

ETH Price Outlook

Following a sharp price increase yesterday, the market experienced a slight pullback, causing the price to drop to $1666 at the time of writing, after surpassing $1700 on Monday. This price movement represents a change of approximately 0.23%.

This price reached by Ethereum on October 2nd indicates the highest price seen in September. Furthermore, considering the price it had two years ago during the same period, Ethereum appears to have dropped by around 66% from its all-time high of $4,878.

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