TL; DR
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The process of launching a crypto Exchange Traded Fund (ETF) in the US appears to follow this process: financial companies apply, the SEC rejects them (requests changes to the application), the companies go back to the drawing board, the cycle repeats…
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Until finally daddy (the SEC) breaks down (At least that’s the hope).
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Applications for a spot Bitcoin ETF make up most of the weight, but recently applications for a spot Ethereum ETF have started to slowly pile up.
Full story
You are twelve years old. You want a dirt bike. But first you have to convince your dad to buy you one.
What is the play?
…ask politely? Not really.
You challenge him, continual.
You plead your case each chance you get. You get your other siblings to join the cause, slowly wearing him down… until…
*Snap* with shaking hands and twitching eyes he admits.
The process of launching a crypto Exchange Traded Fund (ETF) in the US appears to follow a similar process.
Financial companies apply for them, the SEC rejects them (requests amendment of the application), the companies go back to the drawing board, the cycle repeats…
Until finally daddy (the SEC) breaks down.
At least that’s the hope.
The point is: the more applications there are for specific crypto funds, the greater the pressure on the SEC.
Applications for a spot Bitcoin ETF make up most of the weight, but recently applications for a spot Ethereum ETF have started to slowly pile up.
The first came a few weeks ago from Ark Invest and as of yesterday Grayscale has added a second application.
Why is this important?
A spot Ethereum ETF would allow institutions to buy/trade Ethereum (a scarce digital asset) on the stock market, creating a wave of increased demand.
And demand + scarcity = value.