Business Daily Media

The Times Real Estate

.

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.

News from Asia

Backbase and Synpulse partner to accelerate banking transformation across APAC

Combining Backbase's Engagement Banking Platform with Synpulse's regional expertise to deliver customer-centric solutions SINGAPORE - Media OutReach Newswire - 13 March 2025 - Backbase, the leade...

Technology driving positive outlook for Malaysian small businesses

Malaysia’s small businesses lead the region in innovation Younger entrepreneurs dominate small business landscape AI investment on the rise ...

ST Telemedia Global Data Centres Accelerates AI Ambitions, Achieves Certification under NVIDIA DGX-Ready Data Center Program

SINGAPORE - Media OutReach Newswire - 13 March 2025 - ST Telemedia Global Data Centres (STT GDC), one of the world's fastest-growing data centre colocation service providers headquartered in Singa...

HL Assurance Becomes First in Singapore to Launch Core Travel Insurance Coverage Add-Ons

HL Assurance addresses key concerns for the modern traveller in their new combination of essential travel insurance add-ons. SINGAPORE - Media OutReach Newswire - 13 March 2025 - Singaporeans can ...

USPACE Partners with AICO to Launch 6,000-Satellite Constellation Plan

— Hybrid Constellation Focused on Direct Mobile-Satellite Connectivity to Empower “Belt and Road” Digital Future HONG KONG SAR - EQS Newswire - 13 March 2025 - At the "100 Satellites" exhibition he...

Octa broker receives the 'Best use of AI in fintech' award

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 8 March 2025 - OctaTrader, Octa broker's proprietary trading platform, was recently awarded for the 'Best Use of AI in Fintech 2025' by Global Bu...

Visa offers seamless tap-to-ride experiences for Visa cardholders on Ho Chi Minh City Metro Line 1

HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 13 March 2025 - Visa (NYSE: V), a global leader in digital payments, has continued its role as an Official Co-sponsor of the Inauguration Cer...

Make a Splash This Summer: Celebrate Water and Culture at Five Iconic Bangkok Destinations with ONESIAM

ONESIAM’s Songkran celebrations, part of Siam Piwat’s guest experience program, offer tourists an elevated summer journey through culture, tradition, and immersive festivities BANGKOK, THAILAND - ...

DHL Express Hong Kong becomes the Official Partner of Kai Tak Sports Park

Both parties will collaborate to drive the growth of sports and entertainment events to the city and help to foster the development of Hong Kong into a premier hub for mega live events ...

Henkel presents the next edition of the Martha Schwarzkopf Award for outstanding female scientists

DÜSSELDORF, GERMANY - Media OutReach Newswire - 13 March 2025 - For the fourth time, Henkel is proud to present the Martha Schwarzkopf Award for Women in Science, dedicated to supporting and empow...

Empowering small businesses: Localsearch rolls out affordable digital solutions

New suite of digital solutions designed to boost visibility, engagement, and customer acquisition In response to a rapidly evolving digital lan...

Why Responsible Leadership is a Competitive Advantage for Small Businesses

In today’s fast-changing business landscape, leadership is evolving. While large corporations are reassessing their diversity, equity, and inclusi...

Why it’s a great time to include the EU in your export push

With the US market beset with unknowns, training your sights on mainland Europe in 2025 makes sound sense. Wondering whether the introduction o...

Success Isn’t About Labels—It’s About Mindset

In the lead up to International Women’s Day, I’ve been reflecting on my own success as a business owner and whether or not being a woman has playe...

Accelerate Action- Thryv champions women in business for International Women’s Day

Thryv® (NASDAQ: THRY), provider of the leading small business software platform, is celebrating International Women’s Day by shining a spotlight o...

Sydney Startup Launches AI Platform To Lead the Charge on Gender Pay Gap Action

EvenBetter.ai launches in Australia with First Customers Knight Frank and Fuji Australia Sydney-based startup EvenBetter.ai has today launched th...

Sell by LayBy