Akash Mahendra, Director of Haven1 Foundation, has expressed his thoughts on the recent approval of Ethereum (ETH) futures by Valkyrie Funds and what it means for the crypto and blockchain industry.
Mahendra stated that while the approval of ETH futures is a cause for celebration, it highlights a different situation for those still waiting for a spot Bitcoin ETF. He believes that this approval is a monumental breakthrough for Ethereum, showcasing its rising prominence and signaling a significant shift in the regulatory landscape.
The approval temporarily boosted the price of Ethereum beyond $1,670, but it quickly returned to previous levels. The main difference between spot and futures ETFs is that spot ETFs allow investors to buy the underlying asset without actually owning it, while futures ETFs provide access to futures contracts instead of direct ownership.
With the green light for ETH futures ETFs, Ethereum is entering a new era where it becomes increasingly mainstream. However, as these products gain popularity, Mahendra expects further regulations to provide much-needed clarity for the market.
Although the immediate impact of futures ETFs may not be as substantial as spot ETFs, this development marks a crucial step forward for the industry and demonstrates growing institutional interest. Coupled with the upcoming bitcoin halvening in April next year, this could be a bullish sign for the market.
While there is cause for celebration regarding Ethereum, the situation is different for Bitcoin. Despite months of delays, the market is still waiting for the SEC to approve spot Bitcoin ETFs from various institutions.
In conclusion, the approval of ETH futures ETFs is a significant milestone for Ethereum and the crypto industry as a whole. It paves the way for greater adoption and mainstream recognition. However, the wait for spot Bitcoin ETFs continues, leaving Bitcoin investors eager for regulatory approval.
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