Asset management giant VanEck filed an application with the U.S. SEC for an ethereum ETF, which may become the first ethereum ETF in the U.S.!

Asset management giant VanEck has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an ethereum ETF called “VanEck Ethereum Trust,” according to a publicly available regulatory filing on Friday.

Asset management giant VanEck has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an ethereum ETF called “VanEck Ethereum Trust,” according to a public regulatory filing Friday.

Asset management giant VanEck filed an application with the U.S. SEC for an ethereum ETF, which may become the first ethereum ETF in the U.S.!

This is their first Ether ETF application. If approved, it will be the first ethereum ETF on the U.S. stock market and will be traded on the Cboe BZX exchange.

As of now, the SEC has not approved an exchange traded fund tied to any cryptocurrency value. Last month, the SEC announced that it had delayed its decision on VanEck’s proposed bitcoin ETF until June. The Canadian regulator approved several bitcoin and ethereum ETFs earlier this year.

Asset management giant VanEck filed an application with the U.S. SEC for an ethereum ETF, which may become the first ethereum ETF in the U.S.!

Ether has recently hit new highs in several metrics. Several outspoken leaders in the cryptocurrency space, such as Mark Cuban, have said that in the long run, they believe ETH will surpass BTC in terms of market cap.

So far, despite having the highest hash rate and market cap, Bitcoin has not been enough in terms of use cases. It is primarily used as a medium for storing and exchanging value, but the new cryptocurrency can do many things that Bitcoin cannot.

Ether’s EVM supports local smart contracts and tokens, which opens up endless possibilities – decentralized exchanges (such as the increasingly popular Uniswap), stablecoin tokens protected by the Ether blockchain (such as USDT or USDC), and more.

Ether currently holds only about 37% of the value of Bitcoin, but it boasts over 59% of the transaction volume and a whopping 570% of the recorded transaction count. This is because decentralized trading platforms built on Ether and other blockchains such as the Cryptocurrency Smartchain allow people to trade a large number of tokens, not just the underlying gas tokens.

Asset management giant VanEck filed an application with the U.S. SEC for an ethereum ETF, which may become the first ethereum ETF in the U.S.!

Bitcoin is currently unable to do this. Even then, Bitcoin’s transaction fees are too high for the average user. With the advent of Ether 2.0, Ether appears to be an attractive investment for global traders.

The Ether ETF will allow retail traders to buy and sell ETH directly on their brokerage accounts. this will open up a whole new world of demand, as many retailers who do not have the ability or technical expertise to buy Ether will be able to do so with the click of a button, using the existing interface they know and love.

In addition, the regulatory framework around ETFs is much clearer than the murky tax implications of buying cryptocurrencies outright. It will also make it easier for institutions to buy Ether because they can keep it on their books and pay off capital gains taxes in the usual structured way. The implications of crypto ETFs are far-reaching.

If a bitcoin ETF is approved, that ethereum ETF will likely be approved as well. Over the past few months, we have seen signs that the traditional financial industry is heating up to the cryptocurrency space with the release of the S&P DJI Bitcoin and Ether indices earlier this week.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/asset-management-giant-vaneck-filed-an-application-with-the-u-s-sec-for-an-ethereum-etf-which-may-become-the-first-ethereum-etf-in-the-u-s/
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