Monetary establishments and conventional buyers within the US might be able to get publicity to ethereum (ETH) by means of a futures-backed exchange-traded fund (ETF) as early as the primary quarter of 2022, an analyst at Bloomberg Intelligence estimated.
In keeping with James Seyffart, that is when an ETF backed by regulated ETH futures contracts could possibly be permitted by the US Securities and Trade Fee (SEC).
He additionally famous {that a} spot bitcoin (BTC) ETF can be potential in 2022, nevertheless, SEC approval may take longer on account of considerations about regulation within the underlying bitcoin market, per Bloomberg.
Though broadly thought-about a superior sort of ETF within the crypto group, the SEC has up to now been reluctant to approve a spot-based bitcoin ETF. As a substitute, it has opted for ETFs backed by regulated futures contracts traded on the Chicago Mercantile Trade (CME), which don’t maintain any precise BTC.
Requested by Bloomberg TV about his views on the potential for an ethereum ETF, Sam Bankman-Fried, co-founder & CEO of crypto alternate FTX, additionally stated that he wouldn’t be stunned to see such an ETF permitted.
In the meantime, information additionally got here out on Tuesday that the ETF supplier Direxion has been requested by the regulator to withdraw its proposal for an inverse bitcoin ETF – dubbed the Direxion Bitcoin Technique Bear ETF – that will supply quick publicity to the worth of bitcoin.
The corporate complied and requested the SEC to withdraw the appliance.
At 10:40 UTC, ETH trades at USD 4,593 and is up by 3% in a day and 11% in per week, whereas BTC is nearly unchanged in a day, standing at USD 63,203. The worth went up by 4% in per week.
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