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Friday, June 21, 2024

SEC Approves Spot Ethereum ETF

Spot Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum (ETH) exchange-traded funds (ETFs). The approval comes after a last-minute scramble by issuers to submit their 19b-4 forms, which the SEC had requested earlier this week.

The News was first Found on X:

The approved ETFs are from major players in the industry, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, before trading can commence, the issuers must have their S-1 registration statements become effective. The SEC has recently initiated conversations with issuers regarding their S-1 forms, but the timeline for this process remains unclear. Some analysts speculate that it could take anywhere from a couple of weeks to three or more months.

Crypto markets are currently volatile, with ETH up 2.41%:

ETHUSD 30-Minute Price Chart

The sudden approval of the Ethereum ETFs came as a surprise to many, as the SEC had previously shown little engagement with issuers, suggesting that approval was unlikely.

Prior to the approvals, a group of bipartisan House lawmakers had urged the SEC to approve the ETFs, citing consistency in the Commission’s application of standards and the legal reasoning that facilitated the spot Bitcoin ETPs decision earlier this year.

As the likelihood of approval grew throughout the week, the Grayscale Ethereum Trust discount narrowed from -24% to -6%. The conversion of the trust into an ETF will allow holders to exchange their shares for the cash value of the underlying ether.

While the Bitcoin ETFs have attracted significant assets since their approval, amassing an additional 207,000 bitcoin ($14 billion) on top of the 621,000 ($42 billion) bitcoin held in the Grayscale Bitcoin Trust at the time of its conversion, Ethereum ETFs may face challenges in garnering the same level of traction.

This recent approval could also be a sign that other cryptocurrencies could potentially have their own ETFs.

Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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