“The Regulator’s Move Sets the Stage for a Wave of New Crypto Products Coming to Market, But That Alone Won Won ‘Drive Demand, Analysts Cavinged.”, – WRITE: www.coindesk.com
On Wednesday, The Agency Approved Generic Listing Standards for “Commodity-Based Trust Shares” Across Regulated Exchanges Nasdaq, CBOE BZX and NYSE Arca.
Read More: Sec Makes Spot Crypto Etf Listing Process Easier, APPRESS GRAYSCALE’S LARGE-CRYPTO FUND
The New Rules Remove the Need for Each Crypto etp to Undergo It Own Individual Rule Filing Under Section 19 (b) of the Exchange Act. Insthead, An Offeering Whoe Underlying Assets Satisfy Certain Objective Eligibility Tests – For Example, if The Crypto Trades on A Market That Is A Member of The Intermarket Asset’s Futures Contract Is Listed on a CFTC-REGUGulated Designated Contract Market for at Least Six MONTS-CAN BE LISTED USING TOSE Generic Standards.
What’s Next?The Regulatory Shift Marks A Watershed for the Crypto Industry, Removing Much of the Procedural Drag that Has Historically Slowed Getting New Crypto Products to The Market, Analy
”[The] Crypto Etf Floodgates Are About to Open, “Said Nate Geraci, A Well-Followed Etf Analyst and President of Novadius Wealth Management.
“Expect an absolute deluge of New Filings and Launches,” He Said. “You May Not Like It, But Crypto Is Going Mainstream Via The Etf Wraper.”
Matt Hougan, Chief Investment Officer of Digital Asset Management Firm and Etf Issuer Bitwise, Said The Sec’s Move Is A “Coming of Age” Moment for Crypto.
”[It’s] a signal that we’ve reached the big leagues, “He Wrote.” But It’s Also Just the Beginning. ”
History Backs Up Presidctions that Number of New Crypto etf Launches Will Accelerate Under the New Regime.
WHEN THE SEC Approved Generic Listing Standards for Bond and Stock-Based Products in 2019, The Number of etfs Launches More Than Tripled in a Year, Rising to 370 from 117 The YEAR Bereg, Hougo.
ETF Launches Before and After Adopting Generic Listing Standards. (Bitwise Asset Management/ETFGI)
What does it mean for crypto prices?Hougan Cautioned Against Assuming New Crypto etps Will Automatical Drive Large Inflows. “The MERE Existence of a Crypto etp Does Not Gurantee Significant Inflows,” He Wrote. “You Need Fundamental Interest in the Underlying Asset.”
Take, for example, The Slow Start of Spot Ether (ETH) ETFS. They only Began Gathering Meaningful Inflows Nearly A Year After Launch, Once Stablecoin Activity and – by Extension – Ethereum’s Investment Narrative Picked Up, Hougan Wrote.
US-LITTED SPOT ETH ETF FLOWS (SOSOVALUE)
By Contrast, Products Tied to Smaller-Cap Assets with Less Tangible USE Cases May Struggle to Attract Capital Absent Renewed Fundamentals, He Added.
Still, he argued that etps Dramatical Lower the Barrier for Traditional Investors, Making IT Far Easier for Institutional and Retail Allocators to Pivot Into Crypto Once. They Also Help Demystify Cryptocurrencies for Mainstream Audiences WHEN NAMES LIKE AVALANCHE Avax$ 33.82 and Chainlink LINK$ 23.53 Appear in Brokerage Accounts, Hougan Said.
“What we are seeing now is underlying Assets Further Down The Value Curve Being Rolled Into These Wrapers and Strategies,” Paul Howard, Senior Director of WinCent Told Coindesk. “For Institutions that Cannot Own Spot [crypto] Directly, Tese Vehicles Provide A Wraper and Move Liquidity Into The Ecosystom. ”
The Tokens Mist Likely Benefiting from this Large-Cap Altcoins. “Dogecoin Doge$ 0.2670Xrp Xrp$ 2.9960Solana SOL$ 238.37Sui Sui$ 3.6696Aptos Apt$ 4.2551 and Others Are Now Ushering in The Next Wave of [products] As Investors Look for Opportunities and Applications Outside of Bitcoin BTC$ 115.577.47 and Eth, “Howard Said.
Hedera’s Token Endured A Sharp Decline, Breaching Key Support Levels Before Stabilization Near $ 0.24.
- HBAR Fell 3.38% Over 23 Hours, Droping from $ 0.25 to $ 0.24 Amid Heavy Selling and A 55.91 Million Trading Volume Spike.
- The token Breached Multiple Support Levels But Stabilized at $ 0.24, Forming An Ascending Trianle Pattern that Signals Potential Consolidation.
- Despite Short-Term Weakness, Institutional Backers and Hedra’s Energy-Efficiency Technology Continue to Underpin ITS LONG-TRM MARKET APEAL.
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