Ethereum
SEC Approves Spot Ethereum ETFs in Landmark Decision
The SEC has issued omnibus approval for eight ETH ETF issuers.
Just over four months after Bitcoin ETFs began trading in the United States, the Securities and Exchange Commission (SEC) has given the green light to trading in eight exchange-traded funds backed by spot Ether.
The agency issued an “order granting expedited approval of proposed rule changes, as amended by the amendments made, for listing and trading shares of ether-based exchange-traded products.”
NYSE Arca, Nasdaq and Cbose BZX Funds exchanges which requested a rule change to list and trade ETH ETFs, received approval to trade Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust from BlackRock , the VanEck Ethereum Trust, the ARK 21Shares Ethereum. ETF, the Invesco Galaxy Ethereum ETF, the Fidelity Ethereum Fund and Franklin Templeton’s Franklin Ethereum ETF.
The Commission said it found the proposals to be consistent with rules intended to “prevent fraudulent and manipulative acts and practices” and, “in general, to protect investors and the public interest.”
“Today’s approval indicates that the SEC considers ETH to be a commodity and not a security – contrary to the position it continued to take prior to this week’s events, as described in our recent trial against the SEC,” blockchain software company Consensys told The Defiant via email.
ETH price volatility
It was a volatile day for ETH, which soared nearly 30% last week in anticipation of today’s historic decision. The second-largest cryptocurrency traded as high as $3,960 earlier today before briefly dipping below $3,600. ETH is currently changing hands around $3,700.
Ethereum ETFs will provide exposure to ETH to financial institutions that want to use traditional financial rails and avoid using crypto exchanges, custody and private keys.
Ethereum bulls hope these new ETFs will be comparable interest levels TradFi investors who have invested more than $13 billion in Bitcoin ETFs to date.
Before Ethereum ETFs begin trading, the SEC must approve two forms filed by applicants, 19b-4 and S-1.
Today’s decision comes after a turbulent week in which analysts’ chances of approval rose from 25% to 75%. The change has left exchanges and issuers scrambling to update records to respond to agency requests.