Mon, May 27, 2024 at 18:56

• 

  Kang-hoon

  • Hello Annie, today I have some significant news regarding Ethereum ETFs.

  • Jay Clayton, the former Chair of the U.S. Securities and Exchange Commission (SEC), recently stated that it's inevitable a spot Ethereum (ETH) exchange-traded fund (ETF) will go live on American stock exchanges.

  • 
• Annie

  • Oh, that's interesting!😊 So, what exactly did he say about the approval process?

  
• 

  Kang-hoon

  • Clayton mentioned in a CNBC interview that the SEC has already approved the product itself, and the next step is the approval for the actual trading of these ETF products.

  • There are two pieces of approval needed: the listing approval, which happened on May 23rd, and the registration statement approval, which is still pending.

• Annie

  • I see.

  • So, the listing approval is done, but the registration statement is still pending.

  • What does that mean for the market?

  
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• 

  Kang-hoon

  • It means that while the product is eligible for listing, it won't actually trade until the registration statement is approved.

  • This is a step in the direction of ETH ETFs trading, but it's not the final step.

• Annie

  • Got it.

  • So, it's not trading yet.

  • How does this compare to the process for Bitcoin ETFs?

  
• 

  Kang-hoon

  • Clayton drew a parallel to the Bitcoin ETF process, saying that almost all or all of the questions were decided through a similar process.

  • The recent approval indicates that the market is considered efficacious enough for the product to be listed, but there are still other questions to be resolved.

• Annie

  • That makes sense.

  • Who are the major players involved in this approval process?

  
• 

  Kang-hoon

  • Last week, the SEC approved form 19b-4 filings from several major firms including BlackRock, Fidelity, VanEck, Grayscale, Bitwise, Ark, Franklin Templeton, and Invesco Galaxy simultaneously.

  • These firms are now waiting for the SEC to approve their S-1 registration filings before trading can begin.

• Annie

  • Wow, that's a lot of big names!😲 So, what happens next?

  
• 

  Kang-hoon

  • The next step is for the SEC to approve the S-1 registration filings.

  • Once that happens, these ETFs can start trading on the stock exchanges.

  • Until then, the products are in a sort of limbo, approved for listing but not yet tradable.

• Annie

  • Understood.

  • What do you think this means for the future of Ethereum and the crypto market in general?

  
• 

  Kang-hoon

  • In the short term, this news could create some excitement and speculation in the market.

  • 

  • However, the actual impact will depend on when the registration statements are approved and trading begins.

  • Until then, it's a bit of a waiting game.

• Annie

  • So, would you say this is good news or bad news for investors right now?

  
• 

  Kang-hoon

  • I would consider this as a potential negative in the short term.

  • The uncertainty around the final approval and the actual start of trading could lead to volatility and caution among investors.

  • It's important to stay informed and cautious.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • I'll keep that in mind!👋

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.