Can Ethereum (ETH) get ETF?
What is Ethereum (ETF)?
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Launched in 2015, Ethereum is the second-largest cryptocurrency by market capitalization after Bitcoin. However, unlike Bitcoin, it wasn't designed solely as a digital currency. The founders of Ethereum set out to create a new global, decentralized computing platform by incorporating the security and transparency features of blockchain into a wide range of applications.
From financial instruments and games to complex databases, various applications are already running on the Ethereum blockchain. The only limit to the potential of this blockchain in the future is the imagination of developers. As the non-profit Ethereum Foundation emphasizes, "Ethereum can be used to code, decentralize, secure, and trade almost anything.
Is Ethereum secure?
Currently, Ethereum's security is provided by its own blockchain in a manner very similar to how Bitcoin's security is ensured by its blockchain. The immense computational power contributed by all the computers on the network verifies every transaction and secures them, making it nearly impossible for any third party to intervene in these transactions.
A padlock with the Ethereum symbol
The underlying principles of cryptocurrencies help ensure their security: they operate without the need for permission, and their core software is open source, allowing numerous computer scientists and cryptographers to scrutinize the networks for security and other aspects.
However, the security of applications running on the Ethereum blockchain is limited to the level of security provided by their developers. For example, code may sometimes contain errors that can lead to financial losses. While the source code of these applications is visible to everyone, the user base of each application is generally much smaller than the overall user base of Ethereum, and therefore, it is overseen by fewer people. It is essential to individually research all decentralized applications you plan to use.
The Ethereum protocol is currently undergoing updates to make it faster and much more secure.
ETF News
In May, JPMorgan expressed doubts about the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC).
Nikolaos Panigirtzoglou from the bank shared his views with The Block, stating that the chance of the SEC classifying Ethereum as a commodity before May is less than 50%.
According to the bank, the approval of spot Ethereum ETFs by the SEC would require classifying Ethereum as a commodity similar to Bitcoin rather than a security. Panigirtzoglou notes that this classification is far from certain.
This development comes after the SEC's approval of spot Bitcoin ETFs, following over a decade of rejections. The approval has led to speculation that investors may anticipate the next green light for spot Ethereum ETFs, especially as the price of ETH has risen by about 20% in the last seven days, while Bitcoin experienced a 2.5% increase during the same period.
However, Panigirtzoglou pointed out that the SEC continues to view all cryptocurrencies other than Bitcoin as securities. Last year, JPMorgan suggested that U.S. officials might potentially classify ETH under a new "other category" to avoid categorizing it as a security.
In May, JPMorgan expressed doubts about the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC).
Nikolaos Panigirtzoglou from the bank shared his views with The Block, stating that the chance of the SEC classifying Ethereum as a commodity before May is less than 50%.
According to the bank, the approval of spot Ethereum ETFs by the SEC would require classifying Ethereum as a commodity similar to Bitcoin rather than a security. Panigirtzoglou notes that this classification is far from certain.
This development comes after the SEC's approval of spot Bitcoin ETFs, following over a decade of rejections. The approval has led to speculation that investors may anticipate the next green light for spot Ethereum ETFs, especially as the price of ETH has risen by about 20% in the last seven days, while Bitcoin experienced a 2.5% increase during the same period.
However, Panigirtzoglou pointed out that the SEC continues to view all cryptocurrencies other than Bitcoin as securities. Last year, JPMorgan suggested that U.S. officials might potentially classify ETH under a new "other category" to avoid categorizing it as a security.
SEC Chairman Gary Gensler reiterated last year's stance that tokens utilizing stake protocols, such as Ethereum's ETH token, could be considered securities under U.S. laws. During a session lasting about five hours with lawmakers, Gensler declined to confirm whether ETH is a security. Additionally, he cautioned against interpreting the approval of spot Bitcoin ETFs earlier this week as an indication of the SEC's intention to endorse listing standards for crypto asset securities.
Despite JPMorgan's cautious approach, some analysts, including James Seyffart from Bloomberg Intelligence, expressed a more optimistic outlook regarding the approval of spot ETH ETFs.
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Reference:
Spot Ethereum ETF Onayı Gelirse ETH Fiyatı Kaç Dolar Olur? Yapay Zeka Cevapladı! › COINTURK (coin-turk.com) JPMorgan, Mayıs Ayında Ethereum Spot ETF Onayı Gelme Olasılığı Tahminini Açıkladı - Bitcoin Sistemi Ethereum nedir? | Coinbase
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