The United States Securities and Exchange Commission (SEC) has made another significant decision by granting approval for spot Ether exchange-traded funds (ETFs) in the country. This latest move follows the SEC’s approval of various spot Bitcoin ETF applications earlier this year. The regulatory green light was given through the approval of 19b-4 filings from notable firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. These rule changes will allow for the listing and trading of spot Ether ETFs on their respective exchanges. It’s worth noting that the SEC’s decision to approve these ETFs comes despite ongoing speculation about whether Ether (ETH) should be classified as a security. Although the 19b-4 filings have been approved, ETF issuers still need the SEC to approve their S-1 registration statements before official trading can commence. Analysts believe this process could take anywhere from a few days to several months. The SEC reportedly urged applicants to expedite their 19b-4 filings on May 20, and it’s worth noting that the removal of staking is a significant change seen across multiple filings. It should be mentioned that the SEC has not yet announced its decision on Hashdex’s spot Ether ETF application, which had an earlier deadline compared to other firms. The SEC’s approval of spot Ether ETFs comes shortly after the United States House of Representatives voted in favor of legislation aimed at providing more regulatory clarity to the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act aims to define the roles of the SEC and Commodity Futures Trading Commission, but it still requires passage by the Senate and signing into law. Following the SEC’s announcement, the price of ETH experienced a surge to over $3,900 before subsequently dropping to $3,759 at the time of writing. This is an ongoing story, and additional information will be provided as it becomes available.
SEC grants official approval for Spot Ether ETFs