Get March 5th marked in your calendar, Ethereum traders – that’s the date the Securities and Exchange Commission (SEC) has set its deadline for a decision on an exchange-traded fund (ETF).
Last week (January 10th), Bitcoin finally received its long-awaited approval. Now, hot on the heels of that approval comes Fidelity’s proposed spot Ethereum ETF.
The Fidelity Ethereum Fund was applied for in November last year, with the application noting in its proposal a court ruling that found the SEC’s rejection of spot ETFs was unfair and illegal. This ruling eventually led to Bitcoin receiving approval after more than a decade of back and forth with the regulator.
Many thought this would inevitably lead to an Ethereum ETF, but while it may simply be a matter of time, we’ll have to wait at least until early March for a decision after the SEC delayed its decision.
The price of Ether reacted with a slight dip, falling 2.8% to $2,459 at the time of writing. However, at the same time, cryptocurrency trading volumes increased significantly, up more than 14% in 24 hours, to $11.9 billion.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said.
“The fact that they allowed listing of the futures-based ETFs is enough to say they are thinking about ether the same way they are thinking about bitcoin and you can infer from that they’re probably thinking it’s not a security and not going to regulate it that way,” he said last week.
How Does This Affect Crypto?
Unless you’re invested in Ethereum, you’d be forgiven for feeling a bit ‘meh’ about the news. However, try to remember that what’s good for one is good for all.
For years, cryptocurrency was viewed by many major-league investors as being shady and operating in the shadows.
Much of this is down to the fact Bitcoin and other crypto assets are used in criminal activity such as transactions on darknet websites and ransomware extortion, while previously lax regulation and a refusal for governments to back the assets also put off investors.
But with spot ETFs being approved, these act as an endorsement to legitimise crypto, as well as signal the influx of large amounts of cash in the coming years.
So even if you’re invested in alternative cryptocurrencies, chances are you’ll still feel the effects of this news in the coming months and years.
And if you’re not invested, perhaps this is a great time to get involved. Although the Bitcoin ETF approval failed to have the immediate impact on price some were expecting, many analysts believe this could signal a tidal wave of investment soon, potentially pushing the price over $1.5m per coin over the next few years.
All these potential upticks could spell good news for crypto card users. So if you’re someone who loves the decentralised nature of crypto and would like to use your holdings to make everyday purchases, these cards are the answer.
Crypto cards operate on a simple yet ingenious mechanism. Basically, when you make a purchase using one of these cards, it will simply convert your chosen cryptocurrency into fiat currency ready to pay for your goods.
As you may or may not know, some cryptocurrency assets can fluctuate wildly. However, your crypto card will use live rates to calculate the precise conversion at the exact point of sale.
This instant crypto conversion allows for effortless transactions, ensuring that you can pay for your bus ride or morning coffee as easily as you would with a regular bank card.