The post Don’t hold your breath for an altcoin ETF appeared on BitcoinEthereumNews.com.

On May 23, the US Securities and Exchange Commission approved the first spot Ethereum ETFs, a significant milestone for the cryptocurrency market. But while it’s broadly a positive decision, it’s no outright win for the crypto community.  The move follows the earlier approval of bitcoin ETFs in January. Taken together, the two approvals certainly seem to signal a shift in the regulator’s approach towards digital assets, which can only lead to greater adoption.  However, the wait for other cryptocurrency ETFs is likely to be much longer than the wait for Ethereum’s. The SEC’s approval of Ethereum ETFs also represents a glimmer of a dawning, developing regulatory landscape that will prove hazardous for decentralization and its main exponents. The reasons behind the change of heart  The SEC could be said to have come to its senses.  The decision to approve Ethereum ETFs appears to be based on market pressure and strategic considerations. The approval of Ethereum ETFs means that the SEC clearly recognizes that major cryptocurrencies like Ethereum and Bitcoin are becoming integral to the financial ecosystem — widely adopted, accepted and operating globally — which requires appropriate regulation from authorities rather than a brittle “protectionist” opposition. By shifting to this approach, the SEC can harness the sector’s dynamism while providing a structured environment to protect investors and maintain market integrity.  The SEC’s regulatory framework for Ethereum ETFs provides improved investor protection through several key measures, principally comprehensive surveillance-sharing agreements with institutions like the Chicago Mercantile Exchange (CME), mandates for transparency in pricing and portfolio holdings and mandates for risk disclosures associated with cryptocurrency investments. These measures enhance investor safety in the cryptocurrency space. The approval of Ethereum ETFs is likely also influenced by the need to maintain the US’s competitive edge in financial innovation.  Cryptocurrencies and blockchain have the potential…

---

Filed under: News - @ June 24, 2024 2:22 pm