Blockchain
US Approves Applications from Nasdaq, NYSE and CBOE to List Spot Ether ETFs in Surprise Win for Crypto Sector
“This is an exciting time for the industry overall,” said Andrew Jacobson, vice president and chief legal officer at 21Shares, noting that it is “a significant step” toward commercializing the products.
Trader on the floor of the New York Stock Exchange. Photo: Xinhua
Thursday was the deadline for the SEC’s decision on VanEck’s request. Market participants were bracing for rejection because the SEC had not engaged with them on the requests.
But in a surprise move, SEC officials on Monday asked exchanges to quickly finalize filings, leaving the industry scrambling to complete weeks of work in just a few days, sources said.
Reuters was unable to ascertain why the SEC appeared to have changed its mind.
“The introduction of bitcoin spot ETFs has already demonstrated significant benefits for the digital assets and ETF space, and we believe ether spot ETFs will similarly provide protections for U.S. investors,” said Rob Marrocco, global head of the prices of exchange-traded products at Cboe. Global markets.
Nasdaq and NYSE declined to comment.
When asked about ether ETFs by reporters at an industry event last Thursday, SEC Chairman Gary Gensler – a crypto skeptic – declined to comment. An SEC spokesperson said in an email announcing the approval that the agency would not comment further.
Exchange filings had sought SEC approval for a rule change needed to list new products, but issuers still need the SEC to approve ETF registration statements detailing the information provided to investors before they can begin to trade.
Unlike exchange filings, there is no set time period within which the SEC must decide on such filings. Industry players said it was unclear how long it would take.
Two sources familiar with the process said many issuers are ready to launch, but the SEC’s corporate finance division has indicated it will likely require changes and updates in the coming days and weeks.
The SEC has rejected spot bitcoin ETFs for more than a decade due to fears of market manipulation, but was forced to approve them after Grayscale Investments won a court appeal last year.
Sui Chung, CEO of CF Benchmarks, the index provider for many bitcoin and ether ETFs, said ether is more complex than bitcoin and it could take months for the SEC to review the filings. But since bitcoin ETFs offer an established model, “there’s only so much” the SEC can do, he said.
A range of investors, including hedge funds, asset advisors and retail investors, have poured more than $30 billion into crypto ETFs.
Thursday’s decision is another boon for the cryptocurrency industry’s efforts to break into traditional finance. The UK regulator also approved listed cryptocurrency products this week, while the US House of Representatives passed a landmark bill that seeks to provide regulatory clarity for cryptocurrencies.
While the bill still needs to pass the Senate, its broad bipartisan support marks an important endorsement for the industry.