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Cryptocurrency News Articles
Ethereum Spot ETF Approval Delayed Amidst SEC Scrutiny
Mar 24, 2024 at 05:09 am
The recent approval of Bitcoin spot ETF has introduced investment options for small investors, but concerns arise over the potential approval of spot Ethereum ETFs. Galaxy Digital's analyst expresses skepticism due to the SEC's lack of involvement with ETF applicants and recent subpoenas to cryptocurrency companies regarding their interactions with the Ethereum Foundation. The SEC's classification of ETH as a security remains uncertain, and the outcome of the ongoing investigation may significantly impact the approval process and the price of ETH.
Ethereum Spot ETF Approval: Concerns Linger Amid SEC Scrutiny
The recent approval of the Bitcoin spot exchange-traded fund (ETF) has paved the way for greater accessibility of cryptocurrencies to retail investors. However, the Securities and Exchange Commission's (SEC) pending decision on a similar ETF for Ethereum (ETH) has raised concerns among analysts.
Galaxy Digital's Alex Thorn has expressed skepticism about the imminent approval of Ethereum spot ETFs, citing the SEC's recent lack of engagement with ETF applicants and its issuance of subpoenas to cryptocurrency companies regarding their interactions with the Ethereum Foundation.
Fortune magazine reported this week that several American businesses have received subpoenas in connection with an SEC investigation into the classification of ETH as a security. Thorn contends that any enforcement action against the Ethereum Foundation at this juncture, nearly a decade after its inception, would be "highly unusual." However, he acknowledges the possibility that the SEC may distinguish between the initial coin offering (ICO) and the current secondary trading of ETH.
SEC Chairman Gary Gensler has declined to comment on the agency's stance on ETH's security status. Sources indicate that the SEC is considering Ethereum's 2022 "Merge" update, which transitioned the network from proof-of-work to proof-of-stake, as a factor that could potentially increase the likelihood of ETH being classified as a security.
Despite these uncertainties, analysts predict that an early approval of an Ethereum spot ETF could trigger a surge in ETH prices, similar to the $10 billion inflow witnessed in the Bitcoin spot ETF following its approval.
Ethereum's Market Performance
Ethereum remains one of the most prominent cryptocurrencies by market capitalization. Since March 25, 2023, its price has appreciated by 93.96%. Market observers widely regard Ethereum as a reliable cryptocurrency second only to Bitcoin. In the past 24 hours, ETH's trading volume has declined by 14.23%, while its market cap has increased by 2.85%.
Market Update
The overall cryptocurrency market capitalization has risen by 2.99% in the past 24 hours, reaching $2.47 trillion. Bitcoin (BTC) has gained 3.28% intraday, trading at $65,219 with a 14% decrease in trading volume. Ethereum has followed suit, rising by 2.92% over the same period, despite an 8.20% decline in trading volume. Analysts attribute this decline to the ongoing investigation into the Ethereum Foundation.
Intraday Gainers and Losers
Toncoin and Bitcoin Cash are vying for the top spot on the intraday gainers list. Gala has surged by 15.28%, followed by Worldcoin at 11.56%, Dogecoin at 10.82%, and Floki at 9.37%.
Disclaimer
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