The Securities and Exchange Commission plans to invest heavily in a fund that monitors the price of a precious cryptocurrency after bitcoin. This will lead to a major boost in the investment sector of the crypto industry.
SEC approved an investment product tied to the cryptocurrency Ether, the most valuable digital asset on the planet after Bitcoin for the dynamic crypto industry. The commission allowed a few groups of exchanges to begin displaying investment products termed as Exchange-traded funds(ETFs). These products would facilitate the crypto investments thereby boosting the prices and promoting vivid options about digital currencies.
In the month of January, the commission approved similar products that were involved in monitoring the price of bitcoin. As a result, there was a massive surge in the investment in bitcoin thereby skyrocketing bitcoin’s price. The case of Ether was no different. It has attracted some of the biggest giants of the industry namely Blackrock and Franklin Templeton. This sets the stage for a massive uproar in the crypto industry. The process of offering the E.T.Fs can take several weeks or even months as predicted by the seasoned financial experts of the nation.
An SEC spokeswoman stayed quiet about all this by saying that they just had a formal order for approving the products. The news has led to major celebrations in the crypto industry. A representative for 21Shares, one of the companies seeking to offer the Ether investment product, called it an “exciting moment for the industry at large.” However, industry critics have warned about the repercussions of increased investments in a volatile market.
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The SEC failed to live up to its mission to protect investors and the markets,” Benjamin Schiffrin of Better Markets, a nonprofit that fights for stricter financial regulations, said in a statement. The ETFs are necessary baskets of assets that can help customers to buy shares. The products can be traded hassle-free directly from the brokerage accounts with companies like Vanguard or Charles Schwab. These funds are very popular among the wealth advisors and financial managers because of their potential.
The ETFs tend to offer simplicity to their customers. Instead of complaining about the complex online crypto wallet restrictions the consumer can go online by buying shares in a Ether ETF or bitcoin. This can cause a major improvement in investments.
This is the sole reason why several crypto advocates have been striving in the legal battles of getting these funds approved.
They got their breakthrough this January. The ETFs have been capable of attracting billions of dollars in investments and this is believed just to be the beginning. The price of Ether has rebounded after the crypto downturn began in 2022.
Currently it is trading at 3800$ per coin which is more than 20% of its high of just under 4900$. This is very tiny compared to the gigantic price of Bitcoin (68000$ per coin).
