SEC Approves Spot Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) approved applications from the Nasdaq, CBOE, and NYSE exchanges to list spot Ethereum exchange-traded funds (ETFs).
The SEC filings identify eight Ethereum ETFs proposed for listing on the exchanges, including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and BlackRock’s iShares Ethereum Trust.
“After careful review, the Commission finds that the proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange, the SEC said.
The approval does not mean Ethereum ETFs will begin trading immediately. This is just 19b-4 approval. The ETFs face a process of finalizing S-1 registration statements, a form required by the SEC for ETFs to list securities and establishing exchange agreements through multiple rounds of SEC communication.
Ahead of the approval, SEC Chair Gary Gensler had been cryptic about whether Ether is a security, raising concerns that the agency was tightening its position. To address these concerns, possible spot Ethereum ETF issuers have revised their filings to state that they will not stake Ethereum for yield.
The approval arrives five months after the SEC approved 11 spot Bitcoin ETFs, indicating a dramatic shift in the regulatory landscape for cryptocurrency in the U.S.
Investors, many of whom had retreated following the collapse of FTX’s exchange, have already returned to crypto. Ether, the native token of the Ethereum blockchain, has increased by more than 60% this year. Ether’s long-term upside is anticipated to be significantly bigger than Bitcoin’s.
