Economist gold bug Peter Schiff has lamented that approval of spot Ethereum ETFs by the US SEC will bear some ill effect on the situation with spot #bitcoin ETFs and #Bitcoin itself.
Anticipation Around Ethereum ETFs
Currently, there is a growing expectation that the SEC will soon approve a spot Ethereum ETF. Thus, Schiff mentioned that Bitcoin has recently received support from rumors that were regarding the approval of the Ethereum ETF. However, he also warned that while the young investor interested in cryptocurrency may switch from buying bitcoin ETFs to the newly introduced Ethereum ETF, it may not add to overall crypto exposure.
SEC Deadlines and Expectations
They have filed with the SEC for approval of the spot ether ETFs with the deadline set at May 23 and May 24 for Vaneck and Ark Invest, respectively. Recent reports suggest that the SEC has requested that these issuers of ETFs retreat and resubmit their applications at a much faster pace. This has raised expectations with Bloomberg Analysts predicting the probability of the SEC approval to be at 75%. Some of them think this can move to approval as early as tomorrow.
Schiff has recently had some words to say about Bitcoin and Ethereum about their truthfulness as Cryptocurrency.
Interestingly, Peter Schiff has been one of the most outspoken skeptics of Bitcoin for a long time. At the same time, he frequently raises doubts about the relevance of fragmented training courses and their permanence. In the recent past, he said that although he has made decisions to freeze it, naked Bitcoin and all things related to it, it is not for the folly of trending on social networks, but for genuine disagreement with the Bitcoin enthusiasts.
Schiff is an avid Bitcoin critic and has time and time again referred to the currency as a bubble and currently the market is bearish.
To conclude, Peter Schiff has emphasized the possible effect of spot Ethereum ETFs wherein the favor may turn towards approving ETFs in Ethereum instead of Bitcoin. The crypto community also remains alert as the SEC approaches its decision on possible effects on the market.
Will Bitcoin Break Records? Analyst’s Bold Prediction for a Weekend Surge
According to Standard Chartered Bank, Bitcoin will reach a fresh high before the end of the weekend on upbeat sentiment regarding spot Ethereum exchange-traded funds (ETFs). It is anticipated that this week the US Securities and Exchange Commission (SEC) will permit spot ether ETFs, which will help the entire market in cryptocurrencies, including Bitcoin.
Bitcoin’s Price Surge
Geoff Kendrick, the Head of FX Research and Digital Assets Research at Standard Chartered, is optimistic about Bitcoin reaching new highs and attaining $73,798 earlier this weekend. He largely credits this optimism to the possibility of the approval of ether ETFs that will expand the legitimization of the cryptocurrency industry to the advantage of Bitcoin.
Year-End Price Predictions
Kendrick remains bullish on the longer-term price objectives for Bitcoin. He expects that by the end of 2024, Bitcoin will be worth $150,000 and by the end of 2025 it will be worth $200,000. This optimism is due to new high inflows into spot bitcoin ETFs that recently rose to $12.9 billion.
Market Dynamics
According to Capital. com’s Senior Market Analyst Kyle Rodda, indicated that the price of Bitcoin tends to mirror the movements of the top 100 tech stocks on the Nasdaq. These tech stocks like the NASDAQ and Bitcoin are near record highs as more market participants pin their hopes on rate cuts by the Federal Reserve. Rodda and others have pointed out how the price of Bitcoin tends to move alongside the general market and appetite for risk.
Recent Cryptocurrency Rally
The whole cryptocurrency market has soared significantly, gaining more than 8% in the last 24 hours as per the data from CoinGecko. Bitcoin alone has increased by more than 3.68%, trading at $69,940. This comes after the SEC asked for amendments on ether ETF applications, implying that the likelihood of their approval is close.
Bloomberg’s James Seyffart and Eric Balchunas have upped the chances of the SEC approving spot ether ETFs from 25% to 75%. The initial dates for these approvals are May 23 for VanEck and May 24 for Ark Invest/21Shares.
In the coming year, Bitcoin is expected to make new landmarks due to prospects of approval of spot Ethereum ETFs and increased market optimism.
Mixed Signals from the SEC! Does Internal Confusion Delay Ethereum ETFs?
Interestingly, the U. S. Securities and Exchange Commission (SEC) seems to be on the right track to approve spot Ethereum exchange-traded funds (ETFs) this week against their contrary opinion just two weeks ago. This change has led to debate over issues of harmony in the organization, and political gains in the SEC.
The Storm in a Cup of Tea Most notably, the Security and Exchange Commission has recently changed its position on several issues that were previously entirely supportive of the Ethereum network.
Yesterday, on Monday, the SEC’s division of trading and markets, let the exchanges know they would approve the 19b-4 forms for the spot ether ETFs. This was quite an about-turn because the SEC had no rigmarole in these filings before. This sudden change implies yet again an apparent lack of internal consensus, which leads to speculating that the decision may likely be of a political nature.
Internal Confusion and Disorganization at the SEC
The issuers involved in the S-1 filing engaged the SEC and expressed disappointment that the division of corporation finance was not connected to the division of trading and markets. The division of trading and markets decides on 19b-4 forms while the division of corporation finance deals with S-1 forms. The lack of coordination seen here may indicate certain political influences affecting the decision-making process of these divisions.
Political Implications
Given the political season, observers have wondered if the regulators’ action will be partly influenced by political considerations. Ex-president of the United States of America Donald Trump endorsed cryptocurrencies, stating that the supporters of crypto should support him. This could make the approval of spot ether ETFs a major campaign point if the incumbent sees this sector as key to winning the votes of young people into cryptocurrency.
Younger people might also more enthusiastically invest in these ETFs now that President Joe Biden wants their vote, and the SEC’s approval might help him. A source indicated that Biden could tap into the crypto community by making essential reforms such as the approval of spot ether ETFs.
Industry Reactions
Ji Kim, an employee of the Crypto Council for Innovation, who works as the Chief Legal and Policy Officer, noticed that legislators are realizing that crypto must be regulated. A national poll by the council revealed that crypto-voters could participate in the elections significantly, and they demonstrated an elevated level of decoupling between presidential and congressional ballots.
SEC’s Last-Minute Efforts
The lack of proper engagement with the comments on 19b-4 forms points to the fact that the SEC is under pressure and time-bound. Others have compared some parts of the SEC to be hurrying up to make approvals, by suggesting that it seems like they are writing the term paper before the due date.
Not Entirely Unexpected
Although the SEC’s actions are seen as a spectacular decision, some industry insiders suggest that a spot ether ETF approval could have been in the pipeline. According to Nathan Geraci, President of the ETF store, the SEC had an opportunity to establish specific parameters of ether in October when they approved ether futures ETFs. Since they did not, the way was open for probable approval of spot ether ETFs.
The SEC had already faced many of the technicalities involved in the approval of spot bitcoin ETFs during the early this year, therefore, the final journey of ether ETFs was easier. This preparation made it easier for the SEC to also be able to engage exchanges and issuers even at the very last minute was essential.
Therefore, the approval of the spot ether ETFs by the SEC this week is a multiplicity of factors playing themselves out in the regulatory, political, and market spheres. Although internal coordination issues and political matters would be concerns, there is a tendency to understand decentralized currencies in global financial markets.
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