Ether falls after SEC approves rule change that would open door for spot ETH ETFs: CNBC Crypto World

Ether falls after SEC approves rule change that would open door for spot ETH ETFs: CNBC Crypto World

today ether Falls to end a big week after the SEC opens the door to spot ether ETFs and Hanny rashwan the CEO of 21 shares one of the potential issuers explains when the products could be available for trading welcome to cnbc’s crypto world I’m TAA mckel ether fell this morning even after the SEC approved a rule change that will pave the way for ETFs that buy and hold the cryptocurrency as of noon Eastern ether dropped more than 3% trading just under $3,700 Bitcoin was pretty flat trading around $68,500 and salana slipped around 3% to $167 despite today’s losses ether still held on to its weekly gain of nearly 20% is on Pace for its best week in more than a year 4 days ago eth surged on expectations that sec would approve spot ether ETFs a sudden reversal from previous consensus okay a couple other stories where watching before we get to more on eth ETFs yesterday afternoon the house passed the cbdc anti-s surveillance act preventing the Federal Reserve from issuing a central bank digital currency the bill sponsored by majority whip Tom emmer quote halts unelected bureaucrats from issuing a cbdc which would threaten Americans rights to financial privacy without explicit authorization from Congress during debates before yesterday’s vote Republicans expressed concerns that a cbdc could be used to control Americans transactions while Democrats said a ban would block public sector Innovation 213 Republicans and three Democrats voted for the bill while 192 Democrats voted against it yesterday’s vote count is a start contrast to a vote the day before when 71 Democrats joined 208 Republicans in voting yes for the financial Innovation and technology for the 21st century act a crypto Market structure bill in a sad update from this morning the Dogecoin mascot has passed away cob is the Sheba enu that Rose to fame as the face of both the meme Doge and the token Dogecoin passed away peacefully in her sleep according to an Instagram post from her owner another post on X early this morning from the Dogecoin account said that the impact this one dog has made across the world is immeasurable as of noon Eastern a sympathy rally pushed Dogecoin Higher by more than 6% all right back to spot ether ETFs the big story of the day the SEC approved a rule change yesterday evening that would pave the way for ETFs that Buy and Hold ether the decision comes about 4 months after the SEC approved spot Bitcoin ETFs and the approval came on the day of the sec’s deadline to approve or deny the first application for a spot eth ETF many of the companies that sponsor Bitcoin ETFs including Black Rock bitwise and Galaxy digital have also started the process of launching an ether fund now it’s important to note that this is a first step the applications that were approved the 19 b4s allow exchanges to list different different ETFs but the funds themselves aren’t yet guaranteed to begin trading until their S1 registration filings are declared effective I spoke with Hanny rashwan the co-founder and CEO of 21 shares one of the asset managers planning to launch an eth ETF product to find out what’s next and when we can expect these ETFs to hit the market well thank you so much for joining us uh big day big week and now that we can talk a little bit more about it to some extent I would love to hear from you about what this week has been like um and how you how and when you knew that things were kind of starting to turn in your favor of course aside from the approvals of the EFS themselves a really big story this week was the stunning reversal um you know from DC and from the SEC so how did this play out for you thank you for having me um so at 21 shares we have uh by being the world’s largest issuer of crypto ETFs a lot of experience working with regulators and this is typically how it happens slowly slowly slowly in silence and then all at once uh this is the culmination of many years of effort by our team by our engagement with Regulators uh and it was always a matter of when not if and so we’re quite excited to finally uh be talking about hopefully bringing very soon um ethereum into the hands of American customers retail and institutional in an affordable regulated safe and professional ETF one thing I’m not sure I’m not really getting consensus on as I’ve been reporting this throughout the week is um about the debate on the classification of eth so uh you know of course these approvals last night are just a step one but fast forward a little bit These funds are finally trading does this give us any Clarity on whether we should be classifying eth as a security versus a commodity and to what extent does that matter and to whom to the end user um what matters is being able to access crypto and being able to to partake in this incredibly important part of uh of our Tech future um with respect to the question of whether eth is a commodity or security at 21 shares we have been consistently arguing that it is uh very clearly not a security you can see the house bill with the proposed crypto um bill right now uh highlighting what it takes for an a crypto asset to be sufficiently decentralized ethereum matches a lot of that uh we’ve taken staking out of the product along with a lot of the other issues uers so that there is absolutely no yield and there’s no confusion whatsoever and lastly ethereum has been uh trading in terms of ethereum Futures on the cftc on the Commodities and Futures exchanges and so this is something where I think the consensus opinion at least in the industry uh with very strong legal and Regulatory Arguments for a great many years now has been that ethereum is properly decentralized and is absolutely a commodity um and that allows us to to list it as an ETF uh both in the United States hopefully soon but also as we have listed ethereum ETFs um at 21 shares in Europe and around the world what’s next for these funds and for yours like I said earlier these filings the 19s it’s just a next step and uh we’re really not going to see these funds hit the market until your S1 registration filing is um deemed effective so what does the timeline look that look like uh for you on that is there a little bit of a scramble here a little bit of a delay what are we what should we expect I think that’s that’s a great question I would I would love to share more but I can’t talk too much about the timing in the US uh there are a lot of variables at play what I can tell you is it is a matter of when not if uh there is a a lot of work that has already been done I think a lot of the issuers including 21 Shares are absolutely ready uh and we continue to be engaged with The Regulators uh and committed to bringing this out and releasing it as quickly as we possibly can um but again matter of when not if and and that’s already significantly better than where we were just a few weeks ago the green light for these eth ETFs is really just one piece of a bigger story that we’re seeing um as far as crypto politics are concerned earlier this week we saw the passing of fit 21 um a big step towards crypto regulation where do you see that going and uh do you how optimistic are you feeling about the progress of that after this week I feel pretty optimistic um I think it’s clear that crypto is here to stay and it’s clear that the majority of Americans are very interested in in crypto in owning crypto and investing in it in in safe ways and we’ve always argued for additional uh clarifications and additional regulations to make uh these products accessible and available and to make the consumers feel safe one thing that I will say is that uh 21 shares is available across more than a dozen countries the United States and our regulatory process here is quite unique in how public it is um where every little change every single edit uh is put in a public showing available to anyone um who can just visit their website that’s usually not the case um and the reason I say that is that in the US it may it may seem like there’s something that is sudden and has changed but really we’ve been working on this for a great many years in the background and it’s typically the same kind of process it’s a lot of back and forth it’s a lot of Education explanations and engagement with The Regulators it just happens in a much more public way here and so sentiment changes seem a little bit more short term uh but this is really par for the course uh and a great development all around in maintaining uh additional regulatory Clarity and bringing these products out to customers as soon as we possibly can okay that’s all for crypto world this week we’ll be back again on Tuesday after the Memorial Day holiday as our coverage of one of the biggest crypto conferences in the world consensus 2024 in Austin Texas begins we’ll see you then [Music]

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Hany Rashwan, CEO of 21Shares, one of the potential issuers of spot ether ETFs in the United States, explains what comes next after the SEC approved a rule change that would pave the way for the products.

Chapters:
00:00 – CNBC Crypto World, May 24, 2024
0:21 – Ether slips
0:58 – The headlines
3:20 – Hany Rashwan of 21Shares

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Ether falls after SEC approves rule change that would open door for spot ETH ETFs: CNBC Crypto World