SEC Greenlights Ethereum ETF
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Written by
Yana Levkovich - Updated 2024-05-28 15:15:37
The US Securities and Exchange Commission (SEC) approved eight applications for spot Ethereum exchange-traded funds (ETFs) on Thursday, May 23rd. This decision marks a major change in regulatory stance towards Ethereum, the second-largest digital asset.
This approval allows mainstream investors to gain exposure to Ethereum without owning the cryptocurrency directly.
The 19B-4 submissions outline rule changes and regulatory compliance needed for listing and trading the new ETFs. The SEC noted that the proposals are consistent with Section 6(b)(5) of the Exchange Act.
“After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange.”
The SEC approved 19B-4 filings for the following firms:
- BlackRock Inc.
- Fidelity
- Grayscale Investments Inc.
- Bitwise Asset Management Inc.
- VanEck Associates Corp.
- Ark Investment Management LLC
- Invesco Capital Management LLC
- Franklin Templeton
Despite this approval, these firms still need the SEC's approval for their S-1 filings. An S-1 registration statement provides details on the financials and business operations of the ETF providers, helping investors make informed decisions.
The timeline for listing these ETFs is uncertain. ETF analyst Nate Geraci mentioned that the SEC might delay the S-1 approvals due to a lack of engagement. However, Bloomberg’s James Seyffart tweeted that if they work hard, this process could take a few weeks, though it has taken over three months in some cases.
While the SEC’s approval is a significant milestone, the launch of these spot Ethereum ETFs depends on the pending S-1 approvals. Despite the uncertainty, the regulatory approval has sparked optimism in the crypto community. Many see it as a crucial step towards broader acceptance and adoption of Ethereum in traditional finance.
