Ark Invest’s CEO Cathie Wood predicts there’ll solely seemingly be Bitcoin and Ethereum spot ETFs within the US. That is primarily based on her perception that the Securities and Exchange Commission (SEC) will unlikely approve funds that don’t maintain the 2 most important crypto tokens by market cap.
Solely Bitcoin and Ethereum Have The SEC’s Blessings
Throughout an interview with WSJ’s Take On The Week podcast, Cathie Wooden talked about that it will be stunning to see “anything but Bitcoin and Ether being approved by the SEC.” This echoes the emotions of specialists who’ve predicted prior to now {that a} fund like an XRP ETF is unlikely to launch anytime quickly.
In the meantime, folks like Steven McClurg, Chief Funding Officer at Valkyrie Investments, have suggested that the Spot Bitcoin ETFs and the potential approval of a Spot Ethereum ETF may usher in ETF filings referring to different tokens.
It’s price mentioning that Cathie Wooden’s Ark Make investments is one of the issuers of the present Spot Bitcoin ETFs (ARK 21 Shares Bitcoin ETF). The asset supervisor has also applied to the SEC to supply a Spot Ethereum ETF.
However, nothing means that ARK Make investments plans to file for ETFs for different crypto tokens, and Wooden’s latest remark explains why.
Though the SEC has but to approve the pending Spot Ethereum ETFs, business specialists are optimistic that the Fee will authorize them similar to it did with the Spot Bitcoin ETFs. Bitwise’s Chief Funding Officer stated throughout a panel dialogue on the Trade ETF convention that it “is probable we will get an ETH ETF reasonably soon.”
Why The SEC Is Unlikely To Approve Different Crypto ETFs
Bloomberg analyst James Seyffart has beforehand given insights into why the SEC is unlikely to approve different crypto ETFs, particularly an XRP ETF. He recommended that XRP futures should be traded on a regulated market just like the Chicago Mercantile Exchange (CME) earlier than the SEC can contemplate any functions.
This aligns with the SEC’s issues a few potential market manipulation relating to those crypto tokens. The Fee had beforehand rejected the Spot Bitcoin ETF functions on that floor however had no selection however to approve them when the court ruled in Grayscale’s case that the futures and spot market are correlated.
Bitcoin futures had been actively buying and selling on the CME, and Bitcoin futures ETFs had been already in existence, so Grayscale may simply argue that the Spot market deserved the identical remedy because the futures market.
Chart from Tradingview
