Here is the article cited in the video:
https://decrypt.co/231481/ethereum-spikes-etf-approval-rumors
Will we see Ethereum Spot ETFs approved? This is the thought since the SEC asked for amended filings. What does this potentially mean for the market?
▶️ 3Speak
I think ETH ETFs will be approved. They've seen the success of BTC ETFs, so a lot of big companies, especially Blackrock will probably put pressure to have it approved. But like before, it will probably be at the time of their choosing. They will flip flop on the decision to introduce more volatility and accumulate.
I do wonder if it will affect BTC, BTC ETFs price.
I do wonder if it will affect BTC, BTC ETFs price.
So far, overall, it seems prices go up.
I think it is clear the impact from a price perspective. ETFs will fuel demand which means more gets bought.
It also feeds TradFi though.
I guess that's true. I was thinking if the appearance of ETH ETfs would make some investors pivot out of BTC ETFs. BTC and ETH's sacrifice to the big companies hopefully pushes crypto and blockchain further into mass usage.
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
 | You published more than 5100 posts. Your next target is to reach 5200 posts. |
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP
Summary:
In this video, the host discusses the recent spike in Ethereum's price, which jumped around 10% in about 20 minutes. This price surge was reportedly due to rumors of the SEC potentially approving an Ethereum spot ETF. However, the host cautions that until an official announcement is made, this remains speculation.
The host then delves into a more in-depth analysis of the potential implications of an Ethereum ETF. He explains that while an ETF approval could be positive for Ethereum's price, it would also further enable Wall Street's involvement and control over the cryptocurrency. The host argues that centralized exchanges like Coinbase are already quite "Wall Street-esque", and an ETF would channel more trading volume through traditional financial channels rather than the Ethereum blockchain itself.
The host believes that Ethereum ETFs are an inevitability, regardless of the current SEC chair's stance, as the regulatory landscape will likely shift over time. He draws parallels to the approval of Bitcoin ETFs, noting that similar price impacts could occur for Ethereum. However, the host is skeptical about Ethereum's long-term prospects, viewing it as more of a "banker's chain" rather than a transformative technology for the broader crypto ecosystem.
Detailed Analysis:
The video begins with the host, Taskmaster4450, discussing the sudden 10% price surge in Ethereum, which jumped from around $3,100 to $3,400 in a matter of minutes. He cites a Decrypt article reporting that this spike was due to rumors of the SEC potentially approving an Ethereum spot ETF.
The host acknowledges that until an official announcement is made, this remains speculation, and he had no prior knowledge or insight into these rumors. He emphasizes that the likelihood of approval has increased from around 25% to 75%, but there is still no certainty.
Delving deeper, the host expresses concerns about the potential implications of an Ethereum ETF. He argues that while it may be positive for the asset's price, it would further enable Wall Street's involvement and control over the cryptocurrency ecosystem. The host notes that even centralized exchanges like Coinbase are already quite "Wall Street-esque", being regulated financial institutions that could potentially be acquired by larger players like BlackRock or Fidelity.
The host contrasts this with decentralized exchanges, which he believes are a better option for purchasing Ethereum. However, he explains that an ETF would channel more trading volume through traditional financial channels, rather than the Ethereum blockchain itself. He cites the example of BlackRock's Bitcoin ETF, which charges a 0.25% yearly fee, and has amassed $18.5 billion in assets.
The host believes that a similar scenario would play out with an Ethereum ETF, where a significant portion of the trading activity would occur on the stock exchange rather than the Ethereum network. He suggests that this could limit the impact on Ethereum's base layer and potentially hinder the success of Ethereum-based applications (EVMs).
While the host acknowledges that an Ethereum ETF could potentially drive the asset's price higher, similar to Bitcoin's trajectory, he is skeptical about the long-term implications. He notes that the level of excitement for Ethereum may not be as high as it was for Bitcoin, and that much of the capital allocation for this type of investment has already gone into Bitcoin ETFs.
Ultimately, the host believes that Ethereum ETFs are an inevitability, regardless of the current SEC chair's stance. He suggests that even if Gary Gensler, the current SEC chair, remains an impediment, he will eventually be replaced, and a more crypto-friendly regulator may take his place. The host draws parallels to the eventual approval of Bitcoin ETFs, and believes that a similar outcome is likely for Ethereum.
In conclusion, the host provides a nuanced analysis of the potential impact of an Ethereum ETF, highlighting both the potential price benefits and the concerns about the further integration of cryptocurrency into traditional finance. He remains skeptical about Ethereum's long-term prospects, viewing it as more of a "banker's chain" rather than a transformative technology for the broader crypto ecosystem.