The United States Securities and Exchange Commission (SEC) has approved the spot Ether exchange-traded funds (ETFs) for trading on several exchanges.
The SEC approved the 19b-4 filings of VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise on May 23. The approvals granted permission for the listing and trading spot Ether ETFs on the exchanges of the companies above.
Amidst conjecture regarding the securities regulator’s potential investigation into classifying Ether as a security, the pivotal ruling transpired.
Although the 19b-4s have received approval, the SEC’s approval is still required for the spot Ether ETFs to commence trading, as indicated on the S-1 registration statements submitted by ETF issuers. Industry analysts say this may require days, weeks, or even months.Â
On May 20, the SEC reportedly directed applicants to expedite their 19b-4 filings. In multiple filings, the elimination of staking is the most prominent modification.
The SEC did not declare Hashdex’s spot Ether ETF application approved. The commission was due on May 30 for the investment vehicle of the asset manager, which was earlier than Grayscale, Invesco Galaxy, BlackRock, and Fidelity. Whether the SEC will ultimately sanction Hashdex’s ETF is unknown.
The SEC’s approval comes one day after United States House of Representatives members voted in favour of legislation many believe will provide the cryptocurrency industry with greater regulatory clarity.
The Senate must still approve and ratify the Financial Innovation and Technology for the 21st Century Act, which will clarify the responsibilities of the SEC and Commodity Futures Trading Commission.
The approval of the spot Ether ETF follows the industry-first SEC approval of multiple spot Bitcoin ETF applications on January 10, which occurred four and a half months later.
Cointelegraph Markets Pro data indicates that the price of ETH increased to over $3,900 immediately after the SEC announcement before declining to $3,759 at the time of publication.
