The Kids (Grayscale) Are Pushing Dad (The SEC) To Breaking Point...
TL;DR
The process of launching a crypto Exchange Traded Fund (ETF) in the US seems to follow this process: Financial firms apply for them, the SEC rejects them (requesting changes to the application), the firms go back to the drawing board, the cycle repeats…
Until eventually, dad (the SEC) breaks (That’s the hope at least).
Applications for a spot Bitcoin ETF make up the brunt of the weight, but recently applications for a spot Ethereum ETF have slowly begun to pile on.
Full Story
You’re twelve years old. You want a dirt bike. But first you need to convince your dad to buy you one.
What’s the play?
...ask politely? Hell no.
You badger him, constantly.
You plead your case at every chance you get. You get your other siblings to join the cause, slowly wearing him down...until...
*Snap* with shaking hands and a twitching eye, he gives in.
The process of launching a crypto Exchange Traded Fund (ETF) in the US seems to follow a similar process.
Financial firms apply for them, the SEC rejects them (requesting changes to the application), the firms go back to the drawing board, the cycle repeats…
Until eventually, dad (the SEC) breaks.
That’s the hope at least.
Point is: the more applications there are for specific crypto funds, the greater the pressure on the SEC.
Applications for a spot Bitcoin ETF make up the brunt of the weight, but recently applications for a spot Ethereum ETF have slowly begun to pile on.
The first coming from Ark Invest a few weeks back, and as of yesterday, Grayscale added a second application.
Why is this important?
A spot Ethereum ETF would allow institutions to buy/trade Ethereum (a scarce digital asset) on the stock market, creating a wave of increased demand.
And demand + scarcity = value.