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Myriad Positive Effects From ETH ETF Approval

By cryotosensei | CryptoSensei | 27 May 2024


Myriad Positive Effects From ETH ETF Approval

The approval and upcoming launch of spot ETH ETFs in the United States will mean that lots of money will flow into these assets. Increased demand for ETH will consequently result in a price pump. But wait, that’s not the only benefit of these shiny new ETFs. They bring about positive domino effects via the following:

1. The CEO of BlackRock-backed RWA firm Securitize, Carlos Domingo, went on record to state that the provision of ETH ETFs will facilitate the tokenising of digital assets on Ethereum, thus broadening its appeal. We all know that tokenisation of real-world assets is the future of financial possibilities.
2. You just need one nation to pave the way. Hong Kong approved spot ETH ETFs before the States, no doubt, but America still wields greater influence as the world’s first superpower. And when it makes a move, the rest of the world sits up. The Korean Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are now under pressure to reconsider their cautionary stance against ETH ETFs, now that 8 such ETFS have been approved in the States. It is only a matter of time before South Korea approves of ETH ETFs because it’s hard to resist against the influence and pull of such a mighty power.
3. Now that the ambiguity regarding the classification of ETH is removed, this regulatory clarity about ETH being a commodity could result in the lifting of bans on staking. Staking is the sweetest passive income there can be, so increased opportunity to do that is much welcomed.
4. Did you know that SafePal, a fintech company in Singapore has collaborated with Swiss bank, Fiat24, to launch a crypto Visa card powered by USDC and with its transactions recorded on the Arbitrum chain? This Visa card is plugged into all major electronic payment platforms, involving the likes of Paypal, Google Pay, Apple Pay and Samsung Pay. The approval of ETH ETFs will consequently lead to a more conducive environment for developers and merchants to come up with more novel innovations like this.

References

https://decrypt.co/232279/ethereum-etf-approvals-tokenizing-assets-completely-safe

https://cointelegraph.com/news/korea-under-pressure-to-approve-crypto-etfs-following-us-example

https://www.binance.com/en/square/post/8565445702953

https://cointelegraph.com/news/singaporean-fintech-launches-usdc-powered-visa-card-swiss-bank-fiat24

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cryotosensei
cryotosensei

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