The crypto industry and agencies are likely to leverage lessons from Bitcoin's ETF approvals.
The U.S. Securities and Exchange Commission (SEC) has been cautiously navigating the cryptocurrency landscape, and recent comments from SEC Commissioner Hester Peirce suggest that the approval process for Ethereum-based Exchange-Traded Funds (ETFs) might take a different path than that of Bitcoin ETFs. Peirce, often referred to as "Crypto Mom" for her supportive stance on cryptocurrencies, indicated that the SEC has garnered valuable insights from its experience with Bitcoin ETFs that could influence how it handles Ethereum ETF applications.
Peirce emphasized that Ethereum ETFs should be subject to the same consumer and market considerations as any other type of ETF. This means that the SEC will likely evaluate Ethereum ETFs based on their potential risks and benefits to investors, as well as their impact on the broader market, without the need for court intervention to correct the process.
Bitcoin's journey to ETF approval was fraught with challenges and delays, which Peirce has openly criticized. The SEC took a cautious approach to Bitcoin ETFs due to concerns about market manipulation and the lack of traditional market surveillance. However, with the eventual approval of Bitcoin ETFs, the SEC has set a precedent that could make the road smoother for Ethereum and other cryptocurrencies.
Peirce's comments suggest that Ethereum ETFs may benefit from the lessons learned during the Bitcoin ETF approval process. This could mean a more streamlined and traditional path to approval for Ethereum investment products, without the need for the kind of legal pressure that was seen with Bitcoin ETFs.
Despite the optimism surrounding a potentially smoother approval process for Ethereum ETFs, the price of Ethereum, like many other cryptocurrencies, continues to experience volatility. Investors and the Ethereum community are hopeful that the approval of Ethereum ETFs could bring more stability and legitimacy to the cryptocurrency, potentially attracting more institutional investment.
