Ethereum ETFs Will Be APPROVED

What you need to do. May 20, 2024 [WEBSITE]( | [UNSUBSCRIBE]( The approval of a spot ETH ETF is inevitable. Here’s what you need to know. Ethereum ETFs Will Be APPROVED CHRIS CAMPBELL Dear Reader, It’s a big week for Ethereum. On Thursday, the SEC will either affirm or deny the Ethereum spot ETF. Currently, Polymarket is giving approval an 11% shot. Crypto is EXTREMELY negative on approval. Surprisingly, traditional finance is (a bit) less bearish. The discount window on Grayscale’s closed-end Ethereum fund (ETHE) has been closing. This is a signal that perhaps TradFi is betting that the Ethereum ETF is closer than even native crypto bulls think. So what’s going to happen on Thursday? If the ETF is denied -- as everyone expects -- not much will happen. We might see a small dip, but most people will shrug. If we see a surprise approval? We’re going to see fireworks. Two questions naturally follow: 1.] How likely is it to happen this week? Well, as I mentioned on Friday, the markets have been too pessimistic. 2.] But is it worth the risk? I’ll tackle that question, too. Let’s take a look. The Case For Approval There are compelling reasons to believe that the tide may be turning in favor of Ethereum. Despite the current low sentiment and the seemingly slim odds of approval, a closer examination of the regulatory landscape suggests that an ETH ETF approval may be more likely than the market anticipates. One key factor pointing towards a potential ETH ETF approval is the SEC's previous decision to approve ETH futures ETFs in October 2023. Sure, the approval of futures-based ETFs does not necessarily guarantee the approval of spot ETFs. Which is why the market is so bearish on a May approval. The critics (correctly) argue that previously approved Bitcoin futures ETFs while rejecting multiple applications for spot Bitcoin ETFs. BUT The approval of ETH futures ETFs does imply that the SEC considers Ethereum to be a commodity, which falls under the jurisdiction of the CFTC. Much of the bearish sentiment comes from the fear that the SEC is going to classify Ethereum as a security. But there’s reason to believe the market is in for a surprise on that front -- if not this week, then later in August. Your Subscription is Due For Upgrade: Should We Add This To Your Subscription? We’ve added a new level of service to Altucher’s Investment Network with a slew of new benefits, and you have been authorized to claim this upgrade right away. [Click here now to see how to claim your upgrade offer.]( Staking is a Security? Most people aren’t aware that SEC Chairman Gary Gensler has publicly stated that ETH is a commodity, not a security. Last year, a video surfaced of Gensler telling hedge funds that Litecoin and Ethereum were not securities. The caveat is that the video was filmed in 2018 -- long before Ethereum switched to proof of stake. While he has been reluctant to clarify Ethereum's status in front of Congress, the upcoming ETF decision will force the issue. There’s a real chance the SEC is moving toward classifying Ethereum staking as a security, while keeping Ethereum as a commodity. Though speculative, consider this: ARK and 21Shares, two prominent financial firms, have spot ETH ETF decisions due on May 23. Interestingly, they both recently amended their filings to remove the staking of underlying ETH. Normally, staking ETH in an ETF would provide free revenue, so no issuer would proactively remove this unless a regulator had signaled a path forward. This indicates that they are preparing for an approval that aligns with regulatory expectations. The Bulldog Steps Down Grayscale, a firm known for its tenacity in the face of regulatory hurdles, recently withdrew its ETH Futures ETF application. Grayscale has a track record of fighting for its products, even forcing the SEC to approve the Bitcoin ETF. Their decision to withdraw could suggest they see a spot ETH ETF approval as imminent, making the futures ETF less necessary. One observer noted, “This withdrawal signals that Grayscale is not pursuing a lawsuit, indicating they expect a spot ETH ETF approval soon.” Perhaps the SEC doesn’t want to suffer yet another defeat in the courts -- as happened with the Bitcoin spot ETFs. And there are some in the SEC who 100% support the passage of a spot Ethereum ETF. In an interview with Coinage Media in January, SEC Commissioner Hester Peirce said that a lawsuit won’t be necessary to convince the SEC to approve a spot Ethereum ETF. “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right,” said Peirce. “That’s now how we’re going to do our approvals.” One possibility is that the SEC could approve the exchange rule changes (19b-4s), while dragging their feet on the registration statements (S-1s). This approach would relieve the SEC from political pressure (and lawsuits) while also delaying the actual release of the ETFs to the public. Worth the Risk? The approval of spot ETH ETFs could be a game-changer for Ethereum and the broader crypto industry. It would provide regulatory clarity and open up access to new capital inflows, similar to the impact of spot Bitcoin ETFs. To be clear, James and I both believe the Ethereum spot ETF is inevitable. Whether it happens this week, in August, or later. (I think we have a 75%+ probability of it happening before May 2025.) An unexpected approval this week would undoubtedly reverse the current low sentiment surrounding Ethereum and potentially lead to a WILD run upwards. But… is it worth the speculative risk? As mentioned, the market already expects flat-out denial. So if that happens, the downside seems pretty limited. So the risk isn’t huge for Ethereum. That said… James and I have spent years looking for opportunities that will outpace Bitcoin, Ethereum, and even many other leading cryptos. And recently, we think we’ve hit gold. (It’s not Ethereum.) Best part? We think this strategy will do well with or without an Ethereum ETF. In a recent interview, James spills the beans: [Click here to watch.]( Until tomorrow, Chris Campbell For Altucher Confidential Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. 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