- The SEC greenlights eight spot Ethereum ETF applications.
- Launch timeline uncertain, pending further approvals.
- The decision signals a potential shift in crypto regulation.
In a landmark decision that could reshape the cryptocurrency landscape, the US Securities and Exchange Commission (SEC) on Thursday, May 23rd, greenlit eight applications for spot Ethereum exchange-traded funds (ETFs), signaling a major shift in regulatory stance towards the second-largest digital asset.
This move paves the way for mainstream investors to gain exposure to Ethereum without directly owning the cryptocurrency.
The 19B-4 submissions detail proposed rule changes and regulatory compliance necessary for listing and trading new ETFs. In its statement, the SEC highlighted the consistency of the proposals with Section 6(b)(5) of the Exchange Act, adding:
“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.”
19B-4 filings for the following firms were approved by the SEC:
- BlackRock Inc.
- Fidelity
- Grayscale Investments Inc.
- Bitwise Asset Management Inc.
- VanEck Associates Corp.
- Ark Investment Management LLC
- Invesco Capital Management LLC
- Franklin Templeton
Despite this approval, the process is not yet complete for these firms, as they still await a nod from the SEC for their S-1 filings. An S-1 registration statement is crucial because it details the financials and business operations of the ETF providers. As a result, it helps potential investors make informed decisions.
However, the timeline for listing these ETFs remains uncertain. ETF analyst Nate Geraci pointed out the possibility of the SEC delaying the S-1 approvals, given the reported lack of engagement on this front. Conversely, according to a tweet by Bloomberg’s James Seyffart, if “they work extremely hard,” this process could take a matter of weeks. However, historically, it has taken over three months in some cases.
Whereas the SEC’s approval marks a significant milestone, the ultimate launch of these spot Ethereum ETFs hinges on the pending S-1 approvals, leaving the exact timeline uncertain. Despite this, the regulatory nod has ignited optimism within the crypto community, with many viewing it as a pivotal step towards broader acceptance and adoption of Ethereum in traditional finance.
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