In a groundbreaking move, the United States Securities and Exchange Commission (SEC) has officially approved the first spot Ether exchange-traded funds (ETFs) in the country. This decision follows a series of significant regulatory actions taken by the SEC this year.
On May 23, the SEC gave the green light to 19b-4 filings from prominent firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval allows these companies to list and trade spot Ether ETFs on their respective exchanges. This landmark decision comes amidst ongoing debates about whether Ether (ETH) should be classified as a security.
However, ETF issuers must still await SEC approval of their S-1 registration statements before the spot Ether ETFs can begin trading. Experts suggest this process could take days to months. The SEC urged applicants to expedite their 19b-4 filings on May 20, with the most notable change being the removal of staking from several filings.
Interestingly, the SEC did not approve Hashdex’s spot Ether ETF application, which had a final deadline set for May 30. The fate of Hashdex’s application remains uncertain as the SEC continues its review process.
This SEC approval comes just a day after the U.S. House of Representatives voted in favor of legislation aimed at providing clearer regulatory guidelines for the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act seeks to define the roles of the SEC and the Commodity Futures Trading Commission but still requires Senate approval and the President’s signature to become law.
The approval of spot Ether ETFs follows the SEC’s January 10 approval of several spot Bitcoin ETF applications, marking another milestone for the industry. Following the SEC’s announcement, the price of ETH surged to over $3,900, though it later settled at $3,759.
The SEC’s decision to approve these spot Ether ETFs marks a significant step forward for the cryptocurrency market, potentially paving the way for increased investment and mainstream acceptance.