The United States Securities and Exchange Commission (SEC) has made a significant decision by granting approval for spot Ether exchange-traded funds (ETFs) in the country. This is the second landmark decision made by the SEC this year, following the approval of spot Bitcoin ETFs in January.
On May 23, the SEC approved the 19b-4 filings from various companies, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval allows for the listing and trading of spot Ether ETFs on their respective exchanges. Interestingly, the decision was made despite speculation that the SEC was considering labeling Ether (ETH) as a security.
Although the 19b-4s have been approved, ETF issuers are still required to obtain the SEC’s endorsement on their respective S-1 registration statements to officially commence trading spot Ether ETFs. Analysts anticipate that this process could take anywhere from a few days to several weeks or even months. On May 20, the SEC reportedly urged applicants to expedite their 19b-4 filings. Notably, several filings have undergone significant amendments, with the removal of staking being the most notable change.
It is important to note that the SEC has not yet announced its decision on Hashdex’s spot Ether ETF application. The asset manager’s investment vehicle had an earlier deadline with the commission, set for May 30. It remains uncertain whether the SEC will ultimately approve Hashdex’s ETF.
Coincidentally, the SEC’s approval of spot Ether ETFs comes shortly after the United States House of Representatives members voted in favor of legislation aimed at providing greater regulatory clarity to the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act seeks to clarify the roles of the SEC and Commodity Futures Trading Commission. However, it still needs to pass through the Senate and receive presidential approval to become law.
Following the SEC’s announcement, the price of ETH experienced a surge, reaching over $3,900. However, it has since dropped to $3,759 at the time of writing. This development is expected to have a significant impact on the cryptocurrency market.
Please note that this is an ongoing story, and additional information will be provided as it becomes available.