WASHINGTON, DC, Friday, May 24, 2024- In a surprise move, the Securities and Exchange Commission (SEC) on Thursday, May 23 approved applications for several spot Ethereum ETFs (exchange-traded funds). The approval applies to exchange listings from Nasdaq, CBOE, and NYSE. The move follows months of delays and a lack of clear guidance from the SEC regarding such products. 1
The approvals come after industry pressure and a recent surge in the price of Ethereum, the world’s second-largest cryptocurrency.
Analysts speculate that the SEC’s decision may be partly driven by the agency’s prior approval of spot Bitcoin ETFs in January.
However, some experts caution that the SEC’s approval doesn’t necessarily signify a broader shift in its stance on cryptocurrencies. The agency is still likely to scrutinize other types of crypto products, such as those focused on DeFi (decentralized finance).
The specific details of the approved Ethereum ETFs, including the issuers and launch dates, are not yet available.
While the exchange applications are approved, individual ETF registration by issuers like BlackRock and VanEck is still pending. This process could take weeks or months.
The complete SEC Ruling can be read here.
- Ethereum ETFs: https://www.sec.gov/files/tm/lk87adfs99.pdf))
However, last week the SEC requested updates to key filings from exchanges aiming to list Ether ETFs, suggesting progress towards approval. This shift comes despite the SEC previously investigating Ether’s classification as a security.
This surprise move by the SEC opens doors for wider US investor participation in the Ethereum market, though the exact timeline for these ETFs to start trading remains uncertain.((Ethereum ETFs: https://www.reuters.com/technology/us-sec-approves-exchange-applications-list-spot-ether-etfs-2024-05-23/[↩]
