Earlier today, the United States Securities and Exchange Commission (SEC) approved 19b-4 filings for eight ethereum spot exchange-traded funds (ETFs), paving the way for the highly anticipated institutional adoption of the second-largest coin. valuable.
The decision comes after months of uncertainty and less than six months after the regulator approved spot bitcoin ETFs. For all the crypto community can remember this week, the regulator unusually “scrambled” and scrambled to target ETF issuers to amend their applications.
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Did MicroStrategy make a mistake by choosing bitcoin over ethereum?
With ethereum spot ETFs likely to be issued in the coming weeks, an x analyst now x.com/LeonWaidmann/status/1793990343756841018″ target=”_blank” rel=”nofollow”>think Michael Saylor, former CEO of MicroStrategy, missed out on big rewards by choosing bitcoin over ethereum. As of May 24, MicroStrategy, a business intelligence company and now one of the largest public companies in the United States, has been increasing its btc holdings over the years.
According bitcoin Treasury BondsMicroStrategy is the largest public company holding btc and controls 214,400 btc worth over $14 billion at the time of this publication.
However, now that the US SEC is putting ethereum spot ETFs in motion, the analyst now points to a hypothetical scenario. If MicroStrategy had chosen eth instead of btc, its stake would have been worth more than $19 billion at spot exchange rates.
This level means that MicroStrategy would earn more than $4 billion. Assuming the business intelligence firm had chosen to buy and not hold but rather participate, its total holdings would be worth more than $20.9 billion by the end of May 2024.
eth trading at a deep discount: will it replicate btc's success?
Looking at the fallout from the approval and trading of spot bitcoin ETFs, it becomes clear that ethereum prices could be significantly undervalued at spot rates. After a brief dip in mid-January, btc prices surged, pushing ethereum to a high of $4,100. On the contrary, the world's most valuable currency soared to over $70,000 and set all-time highs at around $74,000.
With Form 19b-4s from eight ETF issuers, including BlackRock and Fidelity, approved, the only hurdle is approval of S-1 registration statements. There could be delays in this round. However, the US SEC gives the green light and ethereum ETF spot shares will begin trading.
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Still, it is important to note that ethereum spot ETF issuers will hold eth through a regulated custodian and not through staking.
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