On Monday, the price of Ethereum (ETH) dropped 4.20 percent. This made a lot of people very excited in the cryptocurrency world, as they wonder what will happen with its much-anticipated exchange-traded funds (ETFs).
What made it happen? Talks at the Securities and Exchange Commission (SEC) are “discouraging” and “one-sided,” according to people who know what’s going on. This makes it look bad for people who want to make an ETH ETF.
Recent leaks say that the SEC still hasn’t decided what it thinks about Ethereum ETFs. Regulators and possible producers haven’t had much time to talk things over. A lot of people who work in the field are worried that the SEC won’t do anything. Eric Balchunas, a senior financial expert at Bloomberg, said that the agency’s silence was like “violence” in the world of regulation.
Ethereum, SEC’s Security Stance
Court documents show that the SEC sees Ethereum as a security, which makes the legal landscape for ETH even less clear. Even though the SEC’s jurisdiction isn’t clear, they seem eager to take control of the asset class, leaving people hoping for an ETH ETF in the dark.
Major players in investing, like VanEck and ARK Invest, are among those eagerly waiting for government approval. It’s still not clear what will happen with their planned ETH ETFs until May 23 and 24, 2024.
“Don’t hold your breath,” says Justin Sun, the founder of Tron who speaks out. Sun, who has been known to buy a lot of Ethereum, thinks the SEC will turn it down in May. He says that the crypto business and the government should keep talking to each other and learning from each other.
As soon as the news came out, the price of Ether dropped by 4.20%. At the time of the story, it was worth $3,179. In the last 30 days, this amount has dropped by 10.2%. This is 35% less than ETH’s all-time high of $4,878.26, which it reached on November 10, 2021. Even though Ethereum’s (ETH) price is very close to Bitcoin’s (BTC) price, it doesn’t perform as well as Bitcoin, which makes 114% a year. Ethereum could only get 66%.
