Ethereum
SEC Prepares Ground for Launch of Spot Ether ETFs
Update May 23, 2024: This story has been updated with additional information on approvals.
Key takeaways
- The Securities and Exchange Commission has approved a rule change allowing the listing and trading of eight Ether spot exchange-traded funds.
- The approval does not allow the ETFs to immediately begin trading, as the SEC will still need to review individual applications from asset managers for each of the eight ETFs that received initial approval on Thursday. This process could take several weeks.
- This is a victory for the crypto industry, which has been hoping for approval of ether ETFs since a similar product for Bitcoin was approved earlier this year.
The Securities and Exchange Commission on Thursday approved listing applications for eight spot Ether (ETH) exchange-traded funds, although additional approvals are required before you can start trading them.
When will Ether ETFs start trading?
According to a note from the regulator, NYSE Arca has been authorized to list the Grayscale Ethereum Trust and the Bitwise Ethereum ETF; Nasdaq to List iShares Ethereum Trust; and CBOE BZX will list the VanEck Ethereum Trust, ARK 21Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF.
VanEck immediately followed the SEC’s announcement with an S-1 filing, indicating that its product was ready to launch. The S-1 approval process, during which regulators will review specific ETFs themselves, could take weeks, but some analysts believe that process could be accelerated.
SEC arrives despite concerns
Concerns over whether ether is a security and staking were two main reasons why the SEC was reluctant to give the green light to ether ETFs. While many market participants say today’s decision indirectly implies that Ether is not a security, issues with staking were resolved when ETF issuers removed it from their applications .
Some analysts said the White House’s relaxed stance on crypto helped the SEC gain approval. Additionally, a bipartisan group of lawmakers urged the SEC to approve ETFs in a letter to regulators.
Since the approval in January of the bitcoin spot (BTC), markets have been closely watching the approval process of similar funds for the native cryptocurrency of the Ethereum network. This has created a surge in the second-largest cryptocurrency, which is up 60% year to date. Ether rose almost 2% that day when the SEC made its announcement.
CORRECTION: This article has been updated with the correct number of spot Ether ETFs approved for listing.