Hashtag

Best Business Marketing

Octa broker's crypto snapshot: the approval of spot Ethereum ETFs is not on track

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 21 May 2024 - The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased. If approved, it could spark another rally in the cryptocurrency market. Are there any opportunities to make money on the eve of the decision to approve the spot Ethereum ETFs scheduled for 23 May 2024? Octa broker's analysts discuss in the article.

Octa

Understanding spot Ethereum ETFs
Before discussing the features of spot Ethereum ETFs, it is essential to emphasise that they have yet to be approved for trading in the U.S.—but futures Ethereum ETFs have been available for quite some time. Therefore, it is essential to understand the difference.

In a spot market, assets such as commodities, currencies, and securities are exchanged for immediate delivery. The same is true for the much-anticipated spot Ethereum ETFs, as they offer a more straightforward and transparent approach than futures ETFs, which buy derivatives without directly owning the asset. By purchasing cryptocurrency directly, the fund tracks the price of the benchmark cryptocurrency more accurately. Due to the more straightforward purchase process, such an investment offers greater profitability and lower management costs. This is the reason for the public excitement around the approval of the spot Ethereum ETF, scheduled for 23 May 2024.

About the approvals
The U.S. Securities and Exchange Commission (SEC) remains concerned that cryptocurrencies are often involved in fraud, which may cause speculative bubbles and cause investors to start considering this currency type safer after approval. Spot Bitcoin ETFs were only approved after the U.S. Court of Appeals ruled against it in August 2023, which essentially forced it to take action.

‘As a basis, we have that the U.S. SEC is still conservative in its views,’ said Kar Yong Ang, the Octa broker's financial market analyst.
At the time of writing, the editing process for the filing cases is transparent. The 10 May 2024 updated filing for the spot Ethereum ETFs shows that Ark Invest and 21Shares have opted out of staking, meaning the funds are adjusting to the regulator's requirements. Roughly the same thing is happening with other applications. In late April, the commission postponed its review of Franklin Templeton's application with a deadline of 11 June. In May, the SEC postponed a decision on Invesco and Galaxy's application. Before that, the agency extended the review period for a similar application from BlackRock. May 2024 is the deadline for proposals from VanEck and Grayscale.

‘After the decision on VanEck's application, investors will be able to understand what will happen to the other investment companies that have applied,’ commented Kar Yong Ang, the Octa broker's financial market analyst.

Breadcrumb trails lead to launching funds
Despite scepticism on the legal side of the issue, two factors indirectly report increased investor interest in the second most crucial cryptocurrency.

Grayscale Investments has withdrawn its application to create an Ethereum-based futures ETF. According to the speech of its CEO Michael Sonnenshein, Grayscale Investments will focus on converting its Ethereum trust—the world's largest—to spot exchange-traded products.

Traders are getting rid of Hong Kong Bitcoin ETFs and Ethereum ETFs. So, on 13 May 2024, a record was set for capital outflows from the funds: derivatives lost $39.3 million in one day, BTC-backed assets lost $32.7 million, and ETF-backed assets lost $6.6 million.

'It's clear that the outflows are not only due to the correction in the Bitcoin price during this period' said Kar Yong Ang, the Octa broker's financial market analyst. 'Such ETF flows suggest investors are looking at more interesting and profitable funds,' he added.

The future of spot Ethereum ETFs looks promising due to the recent success of spot Bitcoin ETFs. However, it still depends on the regulator's decision and the actions of investment fund representatives. The decision to approve spot Ethereum ETFs may likely be postponed, which does not cancel its approval. In our opinion, there is potential for growth in these two cryptocurrencies in the combination of such factors and in the conditions of local correction in Bitcoin and Ethereum quotes.

Hashtag: #Octa

The issuer is solely responsible for the content of this announcement.

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Octa has also won over 70 awards since its foundation, including the 'Best Educational Broker 2023' award from Global Forex Awards and the 'Best Global Broker Asia 2022' award from International Business Magazine.

Business News

JUHBZ Enhances Cryptocurrency Security with Advanced Measures

DENVER, USA - Media OutReach Newswire - 23 June 2024 - JUHBZ, a globally renowned cryptocurrency trading platform, has launched a comprehensive suite of advanced security measures to address increasi...

Hashtag.net.au - avatar Hashtag.net.au

AWC Welcomes the Founders of Nobu Hospitality to ‘Nobu Bangkok’, the World's Highest Nobu Restaurant at EA Rooftop at The Empire

Redefining Exquisite Dining with Bangkok’s Skyline, Ahead of September Launch BANGKOK, THAILAND - Media OutReach Newswire - 24 June 2024 - Asset World Corporation (AWC), Thailand's leading integ...

Hashtag.net.au - avatar Hashtag.net.au

TDCX and SUPA tie-up to help companies address a key barrier in generative AI adoption

Collaboration provides companies with a one-stop-solution for their data labeling needs Human-in-the-loop model ensures greater accuracy in data labeling outputs SINGAPORE - Me...

Hashtag.net.au - avatar Hashtag.net.au

Forvis Mazars in Singapore conquers Mount Kinabalu to empower young women in Singapore

Leading professional services firm celebrates new global network with impactful climb for Project Pari. SINGAPORE - Media OutReach Newswire - 24 June 2024 - Forvis Mazars in Singapore, a leading glob...

Hashtag.net.au - avatar Hashtag.net.au

Kenanga Investors Launches The Kenanga Alternative Series

With the launch, two new funds have been introduced; the Kenanga Alternative Series: Income Opportunities Fund & the Kenanga Alternative Series: Structured Opportunities Fund. KUALA LUMPUR, MALAY...

Hashtag.net.au - avatar Hashtag.net.au

Dive into the Heart of Thai Traditions with the New ’OZO x Siam Niramit’ Package at OZO Phuket, from Just £65 per person, per night

BANGKOK, THAILAND - Media OutReach Newswire - 24 June 2024 - OZO Phuket invites guests to immerse themselves in the rich tapestry of Thai culture with the newly launched 'OZO x Siam Niramit' packag...

Hashtag.net.au - avatar Hashtag.net.au

Health & Wellness

Tackling the Green Goodness: Investigating Grain Grass Juice Powder

Hashtag.net.au - avatar Hashtag.net.au

Within the bustling world of health and wellness, the exploration for nutrient-rich superfoods is ceaseless. Among the verdant contenders stands barley grass, a powerful source of vitamins, minerals...

Investigating the World of Veggie Lover Protein Powder: A Plant-Powered Elective

Hashtag.net.au - avatar Hashtag.net.au

In later a long time, the notoriety of veganism has surged, driven by concerns for wellbeing, natural maintainability, and creature welfare. As more individuals grasp plant-based diets, the request ...

The Power of Permanence: Why Dental Implants Are Worth It

Hashtag.net.au - avatar Hashtag.net.au

In the realm of tooth replacement options, dental implants reign supreme as the pinnacle of modern dentistry. While dentures and bridges offer temporary solutions, dental implants stand out for thei...

Electric Sit-Stand Desks for Specific Professions: Tailoring to Your Needs

Hashtag.net.au - avatar Hashtag.net.au

Electric sit-stand desks, a modern solution to sedentary work habits, are adjustable desks that allow users to transition between sitting and standing positions with ease. The primary function of th...

Tomorrow Business Growth