The introduction of spot bitcoin ETFs has attracted a new influx of investors, driving a notable increase in trading volume. This trend has generated a wave of optimism that extends beyond bitcoin itself.
But this has not brought forward the launch of an ethereum spot ETF, as the US Securities and Exchange Commission (SEC) is currently evaluating the possibility of such a fund. Despite the uncertainty, experts appear to be optimistic about the trajectory of the world's largest altcoin.
ethereum's Bullish Outlook
bitcoin is gearing up for another major event this year in the form of the halving, which is scheduled for April this year. Looking at previous halving events, Matthew Sigel, Head of Digital Assets at VanEck, has shared a bullish outlook for ethereum.
The executive expressed doubts about the occurrence of a “flippening”, a scenario in which ethereum surpasses bitcoin as the leading crypto asset. However, he anticipates that ethereum will surpass bitcoin in terms of performance.
in a statement to CryptoQuant, Sigel said,
“In the medium term, eth tends to outperform btc in the halving year, right? That's why I don't want to lose the forest for the trees. “I don’t think there will be any changes, but I do think that when the year is over, eth will have surpassed btc.”
ethereum Spot ETF Delays
The VanEck executive discussed the regulatory challenges facing the asset class in the United States, noting that the government's reluctance to involve banks and brokers poses a major obstacle.
This cautious approach by financial institutions has also affected the trading of crypto-asset-related ETFs, with the SEC once again delaying its decision to approve or reject BlackRock and Fidelity's ethereum spot ETF.
“The US government doesn't want banks and brokers touching these assets, right? So, as you look at the allocation strategies of money managers and financial advisors, you'll notice that banks and bank-owned brokerages have been slow or not listing these ETFs as well. We hope that regulation will change over time, but it is a considerable hurdle and we have to constantly remind ourselves that this is not an American asset class. This is the anti-dollar.”
Jake Chervinsky, chief legal officer at cryptocurrency company Variant, echoed a similar sentiment. He said the SEC is facing increasing political pressure and navigating through market instability, which may impact its decision-making process on ethereum spot ETFs.
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