HomeNewsAlex Thorn on SEC’s Possible Ethereum ETF Strategy

Alex Thorn on SEC’s Possible Ethereum ETF Strategy

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  • Alex Thorn thinks the SEC might distinguish between ETH and staked ETH in order to legalize the Ethereum ETF.
  • Price of Ethereum rose 18.43% in a day, indicating optimistic market mood.

Alex Thorn, a researcher at Galaxy, recently offered his opinions on the conjecture of a possible SEC change on Ethereum ETFs.

Thorn speculates that the SEC would try to distinguish between “ETH” as not being a security and “staked ETH” or “staking as a service ETH” as being a security if they were to take a 180-degree turn.

This subtle strategy would fit in with the several probes and pending court proceedings of the SEC. Such a step might allow the SEC to maintain its earlier stances and arguments and approve Ethereum ETFs.

In this case, Thorn also conjectured, the SEC would forbid Ethereum ETFs from staking the ETH they own, a major regulatory move in the developing field of cryptocurrency investments.

Real-Time Ethereum Market 

As of right now, CoinMarketCap data shows Ether (ETH) trading at about $3,653.83. This represents a notable rise of 18.43% in the last 24 hours and reflects a robust bullish trend with a 25.35% increase over the previous week.

In the middle of the continuing regulatory talks, this rising trend in Ethereum’s price suggests optimistic market mood and possible investor trust in the cryptocurrency.

According to previous ETHNews reports, the SEC is supposed to decide this week whether to approve spot Ethereum ETFs. The market dynamics and investor behavior, as well as Ethereum’s general course in the financial markets, are expected to be significantly impacted by this choice.

The way cryptocurrencies are included into conventional financial institutions and governed by authorities will probably be established by the acceptance or rejection of these ETFs.

Understanding Staked ETH and ETH ETF

With Ethereum ETFs, investors can have exposure to the cryptocurrency without having to buy it directly because they monitor its price. These ETFs might give institutional and ordinary investors a more controlled and approachable way to engage in the Ethereum market.

Staked ETH are those that are locked up in a staking mechanism to facilitate the switch of the Ethereum network to a proof-of-stake (PoS) consensus model.

Participants in staking get paid for their contributions to network security, but the possibility of the SEC classifying staked ETH as a security could bring new regulations for these assets.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628