New year has witnessed some crucial regulatory shifts in the crypt-space especially pertaining to the approval of different ETFs. VanEck is one of the major players in this space, and the firm expects the regulatory green light on its Spot Ethereum ETF. Matthew Sigel, who serves as VanEck’s Head of Digital Assets Research, said he was quite optimistic about the future U. S. Securities and Exchange Commission (SEC) decisions. According to Sigel, Ethereum is on the verge of being recognized as a commodity, and that the SEC may approve the Spot Ethereum ETF’s S-1 filing will help push through Ethereum toward bullish phases for blockchain technology and adoption.
Sigel also wants his audience to note that like Bitcoin, Ethereum experienced a rise in its value this year, growing by more than 60%. This rise came hand in hand with records in several major statistics such as the blockchain addresses, the transactions per day, and the user fees. Sigel was quick to explain that such trends should be expected given the fact that it was a healthy growing ecosystem. This he noted especially given that VanEck previously applied for a Bitcoin ETF and even as it has yet to be approved, the firm remains the leader in the cryptocurrency ETF space as it now seeks approval for the Ethereum ETF. He continues to predict that VanEck’s Ethereum ETF will be one of the first to list on an exchange once the commission blesses them.
This explains the process that needs to be fulfilled so as to take Ethereum ETF to the market, with specification to the regulation put in place by the SEC, specifically the S-1 form that is an essential component in listing of these securities. As stated by Sigel, this approval process is similar to an arrangement that is called the ‘two-key’ system, in which the S-1 and the 19b-4 forms are required. And he said he is hopeful that after getting some regulatory feedback the Ethereum ETF trading could start within a few weeks.
Speaking about the further possibilities for the Ethereum network, Sigel put a positive outlook, assuming Ethereum could earn over $70 billion of free cash flows for the token holders by 2030. This forecast remains consistent with the shifting political environment and the higher level of user activity resulting from Ethereum’s ongoing scaling plan. Furthermore, Sigel claimed that cryptocurrencies are to revolutionize many sectors, stating that Ethereum is an ‘’open-source app store’’ which is disrupting tech and banking industries.
He also called for the need to inform the traditional investors on the applicability of the crypto assets. Sigel pointed out that approval of Spot Bitcoin ETFs has opened new market access to a new class of buyers such as registered investment advisors and pension funds. He expects the same case for Ethereum ETFs, which will open up the market and increase the liquidity level tremendously.
Moving forward, Sigel noted that the general trend was a positive turn in the regulatory climate, good industry lobbying, and new legislation like the Fit for the 21 st Century Act. He opined that these variations could lead to a better regulation on crypto cash next year, which will spur the market acceptance of cryptocurrency assets.
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