Ethereum ETF’s decision recalls Bitcoin’s one-time launch

Cryptocurrency

Remember the one-off launch of the Bitcoin ETF?

As the drama of the Ethereum ETF spot approval unfolds, investors and observers of the exchange-traded fund industry may recall parallels between this affair and the events that led to the eventual approval and unveiling of the Ethereum ETFs. Bitcoin spot ETF.

In both cases, the Securities and Exchange Commission (SEC) was initially cautious about approving spot ETFs for these cryptocurrencies. However, pressure from various stakeholders, including issuers, investors, and the maturing crypto market, has spurred a potential move toward approval.

Both decisions reflect growing recognition of the mature cryptocurrency market and growing institutional interest in these assets.

The presence of stain Bitcoin ETFsCryptocurrencies and the potential approval of an ether-based ETF suggest that the SEC is considering growing investor demand for regulated ways to gain exposure to these cryptocurrencies.

A key difference between the two cases is that the approval process for the Ethereum ETF may be faster than that for Bitcoin due to the legal precedent set by the August 2023 Grayscale Court Casewhich effectively overturned the SEC’s initial rejection of the asset manager’s bitcoin spot ETF application.

Both cases highlight the complex path toward approval and greater receptivity toward well-structured spot cryptocurrency ETFs.

Is a Dogecoin ETF Next?

During the first two days of trading this week, the popular cryptocurrency Dogecoin (DOGE) jumped 9% as investors began speculating that the largest coin by market capitalization could be next. be subject to spot ETF approval.

Crypto trader Andrew Kang tweeted to its 244,000 subscribers on Tuesday X, “the chances for a DOGE ETF look brighter than ever.”

While speculation about more spot ETFs is not surprising, it would be surprising if a DOGE spot ETF was next in line.

Cryptocurrencies with clear and demonstrably useful use cases beyond speculation might be viewed more favorably. Additionally, a well-developed ecosystem with robust infrastructure for secure storage and transactions could be a plus. Widespread acceptance, measured by larger market capitalization (total value of all coins in circulation) and higher trading volume (liquidity), can also be taken into account.

For example, there are five cryptocurrencies other than Bitcoin and Ethereum that have larger market caps than Dogecoin, according to data from CoiMnarketCap.com.

Behind Bitcoin and Ethereum, these are the largest cryptocurrencies on the market:

• Attach USDt (USDT): This stablecoin, with a market capitalization of around $111 billion, is pegged to the US dollar and is a popular choice for investors seeking stability in the crypto market.

• BNB (BNB): The Binance ecosystem’s native coin, BNB, has a market capitalization of approximately $91 billion and is used for various purposes within the Binance exchange and its blockchain applications.

• Solana (SOL): Solana, known for its fast transaction processing speeds, currently has a market capitalization of around $80 billion.

The story continues

Overall, the launch of spot Bitcoin ETFs and the increasingly likely approvals of spot Ethereum are positive developments, but they do not guarantee a flood of spot ETFs for more cryptocurrencies. The SEC will likely continue cautiously, prioritizing established cryptocurrencies with well-structured ETF proposals.

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