After a tumultuous journey, the United States Securities and Exchange Commission (SEC) has granted approval for the issuance of Spot Ethereum ETFs. This decision follows a similar approval for Spot Bitcoin ETFs earlier this year, signifying a major milestone in making the second-largest cryptocurrency accessible to institutional investors.
The official announcement was briefly released by the SEC before being removed, possibly due to a premature leak, but has since been reissued. Initially, the SEC was hesitant to approve the ETFs, reflecting previous resistance to cryptocurrencies. However, with both Bitcoin and Ethereum now included in the ETF market, issuers eagerly await approval for their individual filings.
Following the approval of Spot Bitcoin ETFs at the beginning of the year, there was palpable anticipation for the next cryptocurrency to receive approval. All eyes turned to Ethereum, despite skepticism surrounding the SEC’s stance on the matter. However, Bloomberg raised the odds of approval from 25% to 75% towards the end of May, igniting anticipation for the imminent approval of Ethereum-based investment offerings.
The recent approval of Spot Ethereum ETFs by the SEC is a landmark moment for the United States, now home to crypto-based ETFs for the two most prominent digital assets globally. This decision also signifies a significant shift in the country’s perspective on these assets, ushering in a new era of crypto accessibility for institutional investors.
Numerous firms, including VanEck, ARK21 Shares, Hashdex, Invesco Galaxy, Franklin Templeton, Fidelity, and BlackRock, have submitted applications for Ether-based ETFs. VanEck, in particular, faces an immediate approval deadline.
With the approval of Ethereum ETF 19b-4 forms, issuers must now await the approval of their S-1 forms before trading of the assets can commence. This process, which involves offering new securities to the public, may take some time for the SEC to process for each filer, particularly if there are any remaining reservations towards Ethereum ETFs. Based on the timeline for Bitcoin ETFs, the process could range from weeks to months.
The approval of Spot Ethereum ETFs has captured the market’s attention, with many experts predicting a similar surge in value as seen with Bitcoin. In the last 7 days, anticipation for the ETF has already led to a nearly 30% increase in the value of Ethereum, according to CoinMarketCap.
In conclusion, the SEC’s decision to approve Spot Ethereum ETFs represents a pivotal moment in the cryptocurrency market and may pave the way for further institutional investment in digital assets. As the industry continues to evolve, the approval of these ETFs marks a significant step towards mainstream acceptance and integration of cryptocurrencies into traditional investment channels.
