SEC Approval of Eight Spot Ethereum ETFS Boosts Ethereum Price by 20%: A New Era for Crypto Investing

Washington D.C., District of Columbia United States of America
Brian Rudick, GSR senior strategist: substantial performance expected from spot Ethereum ETFS
Daily premium of ETH compared to NAV discount reached -7.19% before approval
Ethereum is a decentralized platform that runs smart contracts and fuels various applications such as DeFi, NFTs, and real world assets
ETH price jumped over 20% in a week after approval
Grayscale's Zach Pandl: spot Ethereum ETFs sustained ether past dip
SEC approved sale of eight spot Ethereum ETFS on May 23, 2024
SEC's decision indicates positive trend for crypto industry with potential for more regulatory clarity and acceptance in traditional finance
Success of Bitcoin ETFS paved way for Ethereum ETFS
SEC Approval of Eight Spot Ethereum ETFS Boosts Ethereum Price by 20%: A New Era for Crypto Investing

ETH Price Surges Amid Excitement for Approved Spot Ether ETFS

The Securities and Exchange Commission (SEC) approved the sale of eight spot Ethereum ETFS on May 23, 2024. This decision has led to renewed optimism in the crypto market, causing Ethereum's price to jump by over 20% in a week.

The approval of these ETFS comes after the SEC approved Bitcoin ETFs earlier this year. The success of these Bitcoin ETFs paved the way for Ethereum ETFS, as many financial firms had already started the process of launching an Ethereum fund.

Grayscale Managing Director of Research Zach Pandl stated that spot Ethereum ETFS mania helped sustain ether past a dip. Brian Rudick, senior strategist at crypto market-maker GSR, suspects substantial performance if the spot ETH ETFS begin trading.

The daily premium of ETH compared to NAV discount reached -7.19% before the approval of these ETFS. This indicates significant demand for Ethereum in the market.

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. It is the second largest cryptocurrency by market capitalization and has become a blue chip coin along with Bitcoin. Ethereum's value proposition is distinctly different from Bitcoin's, as it fuels the Ethereum network that powers various applications such as decentralized finance (DeFi), non-fungible tokens (NFTs), and real world assets.

The SEC approval of these ETFS is a sign that the regulatory stance towards crypto may be softening. The agency lost a lawsuit against Grayscale in 2023, which spurred the approval for Bitcoin products. However, it's important to note that these ETFS do not apply to other crypto projects on the Ethereum network.

The lack of staking in these ETFs is another reason why they may see less demand than their Bitcoin counterparts. Staking is a way for investors to earn interest on their ether holdings by locking up tokens on the network for a period of time. However, Ark, Fidelity and Grayscale updated their filings this month to remove staking from their proposals.

The approval of these ETFS is expected to boost Ethereum's price further as more investors enter the market. The SEC's decision also indicates a positive trend for the crypto industry as a whole, potentially leading to more regulatory clarity and acceptance in traditional finance.


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Confidence

91%

Doubts
  • Is the daily premium of ETH compared to NAV discount a reliable indicator of demand?
  • Will the lack of staking in these ETFS impact their demand compared to Bitcoin ETFS?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Ether Cryptocurrency ETFs Are Approved by the SEC

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. David Yaffe-Bellany Friday, 24 May 2024 01:40
  • Unique Points
    • The Securities and Exchange Commission (SEC) approved investment products tied to the cryptocurrency Ether
    • Before the exchanges can start offering Ether ETFs, the SEC must approve separate applications from companies that want to issue them
    • Customers can buy Ether ETFs alongside stocks traded on Wall Street, offering simplicity compared to navigating complexities of an online crypto wallet
  • Accuracy
    • The SEC's approval allows exchanges to list exchange-traded funds (ETFs) linked to the price of Ether
    • ETFs offer an easier way for people to invest in crypto, potentially boosting prices and promoting wider adoption of digital currencies
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

SEC approves rule change to allow creation of ether ETFs

CNBC News Jesse Pound, Thursday, 23 May 2024 21:32
  • Unique Points
    • The SEC has approved a rule change to allow ETFs that buy and hold ether.
    • "Ether is the second largest crypto asset and has become something of a blue chip coin along with bitcoin, although its value proposition is distinctly different."
  • Accuracy
    • ETFs offer an easier way for people to invest in crypto, potentially boosting prices and promoting wider adoption of digital currencies.
    • The approval could take weeks or months for the process to be completed.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Gensler Says 'Stay Tuned' on U.S. SEC's Decision on ETH ETF

CoinDesk Jesse Hamilton Thursday, 23 May 2024 14:31
  • Unique Points
    • The SEC asked exchanges supporting spot ether ETF applications to refile their 19b-4 forms with universal language this week.
    • Industry participants believe the SEC’s moves this week make it more likely that the ETFs will be approved.
    • Gensler reiterated his agency’s opposition to the crypto bill that passed the House of Representatives on Wednesday.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    No formal fallacies were found in the article. However, there are some implicit appeals to authority and a slight dichotomous depiction.
    • ] WASHINGTON, D.C. — U.S. Securities and Exchange Commission Chair Gary Gensler declined on Thursday to preview his agency's decision on ether (ETH) exchange traded funds (ETFs), though he advised observers to "stay tuned."
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Ethereum ETFs Approved: Insights into the SEC’s Decision

Forbes Magazine Alexandra Andhov Thursday, 23 May 2024 00:00
  • Unique Points
    • The US Securities and Exchange Commission (SEC) approved the sale of Ethereum Exchange-Traded Funds (ETFs) in the United States on May 23, 2024.
    • The SEC combined proposals from the Nasdaq, NYSE, and CBOE exchanges to allow trading of Ethereum Exchange-Traded Products (ETPs) and ETFs.
    • The SEC emphasized the necessity of comprehensive surveillance-sharing agreements with the Chicago Mercantile Exchange (CME) to detect and deter fraud and manipulation in spot ethereum markets.
    • The CME does not currently engage in surveillance of spot ethereum markets, raising concerns about efficient oversight and potential detection of fraud and manipulation.
    • Price movements in the CME ether futures market have been consistently highly correlated with those in the spot ethereum markets over the past 2.5 years.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains a few informal fallacies and some instances of inflammatory rhetoric. It also uses an appeal to authority. No formal logical fallacies were found in the text.
    • . . . the SEC’s second decision regarding crypto Exchange-Traded Products. Earlier this year, in January 2024, the SEC, after a long battle, approved Bitcoin ETFs and ETPs.
    • In its accelerated approval, the SEC focused predominantly on the following aspects: Fraud and Manipulation Prevention . . .
    • Regarding the volatility and risk concerns, one commenter raised concerns about ether's price volatility, arguing that spot ether ETPs "would threaten retail investors and the broader financial system" by entangling the crypto industry with traditional finance.
    • The SEC ultimately left the issue unaddressed. The market volatility is inherent and potentially attractive to many investors, with the principle caveat emptor applying here.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Ether 'bucking' price dip thanks to spot ether ETF excitement: analyst

The Block Co. MK Manoylov Friday, 24 May 2024 09:29
  • Unique Points
    • The SEC approved eight spot ether ETFs on May 23, 2024
    • Grayscale Managing Director of Research Zach Pandl stated that spot ether ETF mania helped sustain ether past a dip
    • Ethereum’s price jumped 20.4% in a week from about $3,099 to current prices due to renewed optimism on potential regulatory approval of spot Ethereum ETF in the United States
    • Brian Rudick, senior strategist at crypto market-maker GSR, suspects substantial performance if the spot ETH ETF begins trading
    • The daily premium of ETH compared to NAV discount reached -7.19%
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication