The U.S. Securities and Exchange Commission (SEC) has approved eight applications for spot Ethereum ETFs.
These funds include the Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF.
Timeline for Trading
Trading will not start immediately.
Bloomberg's James Seyffart suggests it could be a few weeks until fund managers' S-1 documents receive final approval.
SEC's Approval of Ethereum ETF Signals Regulatory Shift
A week ago, approval seemed unlikely.
The SEC had given no indication of moving forward with spot ETH ETF applications before the May 23 deadline.
Recently, Ethereum software company Consensys filed a lawsuit alleging the SEC viewed ETH as an illegal, unregistered security.
This approval implies the SEC does not classify ETH as a security, which is a significant win for crypto advocates.
Navigating SEC Regulations: Adjustments to ETH ETF Applications
To gain approval, some ETH ETF issuers removed staking language from their applications.
Since Ethereum’s shift to a proof of stake system in September 2022, ETH holders can stake their funds to earn rewards.
The SEC considers staking services offered by intermediaries as unregistered securities schemes.
Spot ETH ETFs involve buying and storing ETH on behalf of clients, unlike ETH futures ETFs, which track derivatives contracts.
Institutional Access Granted: SEC Approval Opens Doors for ETH Investment
Approval allows traditional financial institutions and investors to gain exposure to ETH without directly holding any cryptocurrency.
The SEC previously approved spot Bitcoin ETF applications in January, resulting in nearly $13 billion in net inflows.
Cody Carbone of the Digital Chamber of Commerce likened this to ETH’s IPO, saying it’s a major endorsement of the cryptocurrency.
The SEC’s approval of spot Ethereum ETFs marks a significant policy shift, allowing broader investor access to Ethereum.