SEC grants official approval for Spot Ether ETFs

The United States Securities and Exchange Commission (SEC) has given its approval for spot Ether exchange-traded funds (ETFs) in the country, marking a significant decision. This follows the approval of 19b-4 filings from various companies including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. The ruling allows for spot Ether ETFs to be listed and traded on their respective exchanges. Despite previous speculation about labeling Ether (ETH) as a security, the SEC has made this landmark decision. However, ETF issuers still need the SEC to approve their respective S-1 registration statements before the spot Ether ETFs can officially begin trading. Experts believe that this approval process could take a few days, weeks, or even months. In fact, the SEC recently instructed applicants to expedite their 19b-4 filings. It’s worth noting that the most significant change made across several filings is the removal of staking. Hashdex’s spot Ether ETF application was not approved by the SEC, as its final deadline with the commission was set for May 30. It remains uncertain whether Hashdex’s ETF will ultimately gain approval. This announcement from the SEC comes shortly after the United States House of Representatives members voted in favor of legislation that many believe will bring more regulatory clarity to the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act aims to clarify the roles of the SEC and Commodity Futures Trading Commission, but it still requires approval from the Senate and the President. The approval of spot Ether ETFs by the SEC comes four and a half months after the agency approved several spot Bitcoin ETF applications on January 10, which was a significant milestone for the industry. Following the SEC’s announcement, the price of ETH surged to over $3,900 before dropping to $3,759 at the time of publication. This is an ongoing story, and more information will be provided as it becomes available.