US Senators Oppose Spot Ethereum ETFs!

• The success of spot Bitcoin ETFs in the US within just two months seems to have clearly unsettled some legislative bodies.
• Paul Grewal, Chief Legal Officer at Coinbase, respectfully responded to Senators, presenting evidence refuting their claims.
• Recent optimism surrounding spot Ethereum ETFs has diminished due to pressure from legislative bodies.

Following the approval of spot Bitcoin ETFs in the US, Senators expressed opposition to the approval of further token ETFs to the SEC!

Demand for Spot Ethereum ETFs Not Wanted in the US

The success of spot Bitcoin ETFs in the US within just two months seems to have clearly unsettled some legislative bodies. On Thursday, March 14th, Senator Reed and Senator Butler called on the United States Securities and Exchange Commission (SEC) to avoid approving new Exchange Traded Funds (ETFs) beyond Bitcoin for alternative tokens. Indirectly, legislative bodies are seeking the rejection of the spot Ethereum ETF recently under consideration by the SEC.

Paul Grewal, Chief Legal Officer at Coinbase, respectfully responded to Senators, presenting evidence refuting their claims. He emphasized that many digital asset commodities beyond Bitcoin have higher market quality metrics than even the most heavily traded stocks. For example, Ethereum’s (ETH) spot market has depth and liquidity, surpassing the trading volume of only two S&P 500 stocks. Additionally, only one S&P 500 stock has a lower bid-ask spread than ETH.

Compared to Bitcoin, Grewal stated that ETH’s futures and spot markets exhibit the same high and consistent correlation, facilitating market surveillance. This highlights the robustness and reliability of Ethereum’s market infrastructure.

Leading Ethereum contributor Anthony Sassano argues that individuals should oppose this development regardless of personal feelings towards Ethereum (ETH) or its ETF ownership. Sassano emphasizes that many politicians view all cryptocurrencies as the same asset, which could lead to the implementation of adverse policies affecting the entire crypto industry.

Sassano underscores the importance of opposing such actions to prevent detrimental consequences for all cryptocurrencies, regardless of personal preferences.

Spot Ethereum ETFs Could Be Impressive

Recent optimism surrounding spot Ethereum ETFs has diminished due to pressure from legislative bodies. However, VanEck stated in a report released on Thursday, March 14th, that spot Ether ETFs could actually be larger than Bitcoin ETFs. VanEck Portfolio Manager Pranav Kanade said:

“From a market perspective, I believe a portion of the market thinks a spot ETH ETF could potentially be larger than spot bitcoin ETFs. The world of investors looking for cash-generating assets is massive, and ETH certainly produces fees for token holders. Even if an ETF cannot offer this as a part of it, ETH could still be a more sensible asset for more people than Bitcoin, as ETH is still a cash-generating asset.”

With Ethereum’s Proof of Stake, ETH holders can earn returns by staking on the blockchain. Coinbase offers approximately 3% returns for ETH stakers. However, spot ETH products’ SEC approval remains uncertain. While Bloomberg analysts now estimate a 30% chance, Kanade suggests this rate is closer.