ETF Ethereum on going
The US Securities and Exchange Commission (SEC) delayed its decision to approve or reject BlackRock and Fidelity's spot Ether exchange-traded funds (ETFs) a few days ago.
In separate filings on March 4, the SEC announced that a decision on BlackRock's applications for its iShares Ethereum Trust and Fidelity's applications for its Ethereum Fund will be delayed... and may very well be in May 2024.
The SEC first delayed its decision on BlackRock and Fidelity's Ether ETF applications a couple of months ago, back in January.
The SEC can delay its decision up to three times before making a final decision, FYI.
We will therefore have to wait for even a couple of months to pass to see if the Ethereum ETFs are finally approved, although everything indicates that it will be the most likely.
ETF, info about:
An ETF, or Exchange-Traded Fund, is a type of exchange-traded investment fund that is generally designed to track the performance of an index, commodity, bonds, or other underlying assets. ETFs are similar to traditional mutual funds in that they represent a diversified portfolio of assets, but they differ in the way they are traded in the market.
Here are some key features of ETFs:
Stock Trading: ETFs are traded on stock exchanges, allowing investors to buy and sell shares throughout the day, just like common stocks.
Diversification: ETFs typically invest in a diversified portfolio of underlying assets, allowing investors to gain exposure to a wide range of markets and sectors with a single investment.
Transparency: Most ETFs regularly publish information about their underlying portfolio, providing investors with transparency about the assets they are investing in.
Low Costs: ETFs tend to have lower management costs compared to traditional mutual funds, making them attractive to investors looking to minimize the expenses associated with investing.
Flexibility: ETFs offer flexibility in terms of investment size, as investors can buy and sell any number of shares, rather than having to invest a minimum amount as with some mutual funds.
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Income Distributions: Some ETFs may distribute dividends or interest generated by the underlying assets to investors, although this depends on the type of assets that make up the fund.
Creation of ETF Shares
How are ETFs redeemed
The redemption process in the primary market is simply the reverse of the creation process. A creation unit is redeemed when an AP acquires the number of ETF shares specified in the ETF’s creation unit and returns the creation unit to the fund. In return, the AP receives the daily redemption basket of securities, cash, and/or other assets. The total value of the redemption basket and any cash adjustment is equivalent to the value of the creation unit based on the ETF’s NAV at the end of the day on which the transaction was initiated.
23th of may 2024
It is expected that May 23 will be the most possible date for the approval of the ETF for Ethereum. While that date arrives, the bitcoin halving will already be sending the price of bitcoin higher, it seems, although as of this article, bitcoin is already in areas of its all-time high (ATH).
We have to wait, but write down this date for the possibility that it is, there, the date. We only have two months left to check it out.
This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell any asset or crypto asset. Please do your own research (DYOR) or contact your trusted financial advisor.