BTC And ETH ETF Approval Draws Closer, As Deadline Closes-up
Tuesday’s slight decline in the price of cryptocurrencies, with Bitcoin hitting $36,400 and wiping out weekend gains, has focused attention on the United States Securities and Exchange Commission’s (SEC) impending decision on several Exchange-Traded Fund (ETF) proposals, including those involving Ethereum and Bitcoin.
The Nasdaq’s recent 19b-4 form filing for BlackRock’s proposed iShares Ethereum Trust ETF has been a noteworthy achievement. In its petition, BlackRock is requesting SEC permission for its respective Ethereum ETF and other major companies.
The major competitors in the ETH and BTC ETF bid include Invesco, ARK 21Shares, Hashdex, VanEck, and Grayscale, which makes up some of the market’s rivals. In another news, the popular European Union’s banking industry watchdog, The European Banking Authority (EBA) is looking to introduce new rules for stablecoin companies.
This will cine as a guideline to enable them structure a liquidity and minimum capital requirements. Stablecoin companies will also be needed to issue stablecoins that are pegged to an actual currency and fully redeemable.
BlackRock ETH ETF Gains Popularity, Receives Legislative Concerns
BlackRock’s proposed Ethereum ETF is now subject to an official SEC review procedure, which began with filing the 19b-4 form. The SEC has approached bitcoin exchange-traded funds (ETFs) cautiously, highlighting the need for sufficient safeguards for market integrity and investor protection.
Abigail Spanberger and Zach Nunn, the United States Representatives, have jointly launched a guideline, the “Creating Legal Accountability for Rogue Innovators and Technology Act of 2023,” which was also called the 2023 CLARITY Act. The United States legislature plans to restrict federal government officials from doing business with the Chinese Blockchain technology firms.
The restriction also extends to Chinese-owned cryptocurrency trading exchanges. Further investigation revealed that this would compel the affected parties to stop engaging in transactions with iFinex, Tether’s parent company. It was also gathered that 47 governments worldwide have jointly sent a pledge to the Crypto-Asset Reporting Framework (CARF).
Demand For ETF Surge, Major Industry Players Comments
The demand for cryptocurrency exchange-traded funds (ETFs) has surged as investors look for more conventional and approachable ways to gain exposure to digital assets.
David Attlee, from Cointelegraph, said that short-term trends and market dynamics are may be to blame for the current decline in Bitcoin’s price, decisions regarding the approval of ETFs could have a long-term impact on market direction.
Attlee added that the successful conclusion for Ethereum ETFs would indicate a major turning point in cryptocurrency and wider adoption of various digital assets in conventional investing portfolios. With the SEC deadline for these ETF proposals drawing near, market players are keeping a careful eye on developments and bracing themselves for possible changes in investor behavior.
As the entire cryptocurrency community awaits the SEC’s Monday deadline, Michael Sonnenshein, the CEO of Grayscale Investments, has, in what he termed) the “dress rehehat” set aside for the BTC’s official introduction into the traditional financial markets.
On Tuesday, Nate Geraci, the president of ETF Store, commented, citing analysis by James Seyffart’s forecast. Seyffart, according to Geraci, predicted SEC’s ETF approval of the BTC ETF. This is coming when there’s a wide belief that Bitcoin ETF will kick off in January 2024.
However, popular BTC expert, Alessandro Ottaviani, in his recent analysis, provided more clarity to the ETF issuance situation. According to Ottaviani, the decision by the Security and Exchange Commission (SEC) on the 12 applicants may happen from November 11th– November 17th, representing the 8-day window period.
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