SEC prepares for launch of spot Ether ETFs

Learn about the SEC's preparation for the launch of spot Ether ETFs and how they could impact the cryptocurrency market. Read more.

May 24, 2024 - 13:49
May 25, 2024 - 09:53
SEC prepares for launch of spot Ether ETFs
Ether ETFs

The Securities and Exchange Commission has granted approval for the listing of eight exchange-traded funds (ETFs) based on spot Ether (ETH) on Thursday. However, additional approvals are required before these ETFs can be traded.

When can we expect the trading of Ether ETFs to commence?

According to a regulatory memo, NYSE Arca has received approval to list the Grayscale Ethereum Trust and the Bitwise Ethereum ETF. Nasdaq is set to list the iShares Ethereum Trust, while CBOE BZX will list the VanEck Ethereum Trust, the ARK 21Shares Ethereum ETF, the Invesco Galaxy Ethereum ETF, the Fidelity Ethereum Fund, and the Franklin Ethereum ETF.

VanEck wasted no time and immediately filed an S-1, signaling its readiness to launch. The S-1 approval process, where regulators review the ETFs themselves, could take weeks, but there's speculation that it might be expedited.

SEC comes around despite concerns

Concerns regarding whether ether constitutes a security and the practice of staking were significant factors contributing to the SEC's initial hesitance in approving ether ETFs. However, following the removal of staking from ETF applications by issuers, many in the market view the recent decision as an indication that ether is not considered a security. Some analysts attribute the SEC's approval to the White House's more lenient approach to cryptocurrencies, while a bipartisan group of lawmakers also encouraged the SEC to greenlight the ETFs in a letter to the regulators.

Since the approval of spot bitcoin (BTC) in January, the approval process for similar funds for Ethereum's native cryptocurrency has been closely monitored by the markets. This attention has led to a surge in the value of the second-largest cryptocurrency, with a 60% increase year-to-date. Ether saw an almost 2% increase on the day of the SEC's announcement.

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