Share this article
The U.S. Securities and Exchange Commission has announced that it has approved a spot Ethereum ETF to expedite its launch. According to documents uploaded on the agency's website.
“After careful consideration, the Commission has determined that the proposal complies with the Securities Exchange Act and the rules and regulations thereunder applicable to domestic securities exchanges,” the document said.
Eric Balchunas It's not yet available on the front website, but in my experience Phoenix is always right. https://t.co/xI37RVXqRo
— James Seifert (@JSeyff) May 23, 2024
The SEC filing lists eight Ethereum ETFs from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy and BlackRock's iShares Ethereum Trust, which are proposed to be listed on the Nasdaq, NYSE Arca and Cboe BZX Exchange.
The Ethereum ETF faces a multi-week process of finalizing an S-1 registration statement, a form the SEC requires for an ETF to go public, and establishing an exchange agreement through multiple rounds of communication with the SEC.
The move is expected to attract significant institutional inflows into the Ethereum market, with Jeff Kendrick, head of digital assets research at Standard Chartered Bank, predicting inflows of between $15 billion and $45 billion in the first 12 months.
To address the SEC's concerns, potential spot ETH ETF issuers, including Fidelity, Franklin Templeton, Ark, Invesco, Grayscale, Bitwise and VanEck, have updated their filings to confirm they will not hold ETH for yield purposes.
Earlier this week, Bloomberg analysts Eric Balchunas and James Seifert raised their odds of a spot Ethereum ETF being approved this month from 25% to 75%.
The approval of the Ethereum ETF and the passage of the FIT21 cryptocurrency bill signal a change in the Biden administration's stance on cryptocurrencies after former President Trump promised to support the industry and foster a business-friendly environment in the United States.
The approval comes just five months after the SEC approved 11 physical Bitcoin ETFs, signaling a major shift in the regulatory environment for cryptocurrencies in the United States.
Share this article
