Ben Armstrong brings us the latest on the rapidly evolving crypto landscape, with the CoinSpeech team highlighting the most impactful points from his recent appearance. You can find Ben Armstrong’s new video below.
Shifts in the Crypto Landscape
The past week has been monumental in the crypto space, with significant developments around Ethereum ETFs. As Ben Armstrong points out, “things have changed dramatically in the crypto landscape in the last week.” The speculation and excitement around the possible approval of Ethereum ETFs are creating waves.
Approval Process: A Two-Step Journey
Former SEC Chairman, Jay Clayton, clarified the bicameral approval process. The first step is listing approval, followed by the product approval. Armstrong explains, “this product is eligible for listing, but it will not actually be trading until that registration statement is approved.” This distinction is crucial in understanding the progression towards official ETF trading.
Ethereum ETF vs. Bitcoin ETF
Why is Ethereum’s ETF approval considered more intricate than Bitcoin’s? Armstrong breaks it down: “the Ethereum ETF approval is more complicated than the Bitcoin ETF.” He notes that the market has now reached a level of sophistication and interest that merits these financial products, hence why “crypto has now gained enough mainstream interest”.
SEC’s Changing Stance
The SEC’s recent dropping of its investigation into whether Ethereum is a security has boosted the odds of approval. Bloomberg’s Eric Balchunas surged the prediction of a spot Ether ETF approval to 75%. Balchunas stated on social media:
“After hearing the SEC could be doing a 180 on this increasingly political issue, now everyone is scrambling because they assume the ETF will be denied.”
Implications for Investors
Approval of Ethereum ETFs would allow deep-pocket investors to pour their funds into Ethereum, eliminating the hassles of dealing with crypto exchanges and wallets. Armstrong enthuses, “ETFs are also perfect for mainstream investors who want exposure to Ethereum without having to store a seed phrase.”
Altcoin Season on the Horizon?
The expected Ethereum ETF approval can potentially ignite a new altcoin season. Armstrong notes, “Ethereum, often referred to as the king of altcoins, has significant influence over the broader cryptocurrency market. Its price movements often act as a trendsetter for other altcoins.” This mainstream adoption could trigger a ripple effect, leading to a boom in altcoin prices.
Wall Street’s Interest
The attention from financial giants underscores the ETF’s potential. According to Armstrong: “Grayscale, Bitwise, BlackRock, VanEck, Investco, Fidelity, and Franklin Templeton are all in the race to solidify their Ethereum ETFs.”
With mainstream financial institutions lining up and the SEC’s changing stance, this is a pivotal moment for Ethereum and the broader crypto market.