Spot Ether ETFs receive official permission from the SEC

The US Securities and Exchange Commission approved three spots for Ether ETFs following concerns that the regulator was considering categorizing ETH as a security. In a second momentous decision this year, the US Securities and Exchange Commission has given the regulatory go-ahead to list Ether exchange-traded funds (ETFs) in the United States. 

The SEC authorized VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise’s 19b-4 files on May 23, allowing spot Ether ETFs to be listed and traded on their respective exchanges. The groundbreaking decision came despite indications that the securities authority was considering whether to classify Ether as a security.

While the 19b-4s have been granted, ETF issuers still need the SEC to sign off on their respective S-1 registration statements before the spot Ether ETFs may begin trading. Industry observers believe it might take days, weeks, or even months. On May 20, the SEC reportedly urged applicants to hasten their 19b-4 submissions. The removal of staking is the most noteworthy change noticed in multiple files. The SEC did not approve Hashdex’s application for a spot Ether ETF. A final deadline was set for Grayscale, Invesco Galaxy, BlackRock, and Fidelity’s investment vehicle, which had a final deadline of May 30. It is unknown whether the SEC will eventually approve Hashdex’s ETF.

The SEC approval comes a day after the United States House of Representatives passed legislation that many hope will bring more regulatory certainty to the cryptocurrency business. The Financial Innovation and Technology for the 21st Century Act will clarify the functions of the SEC and the Commodity Futures Trading Commission, but it must still be approved by the Senate and signed into law.

In January 10, the SEC cleared multiple spot Bitcoin ETF applications, setting an industry precedent. The spot Ether ETF has been approved four and a half months after the SEC cleared multiple spot Bitcoin ETF applications. In the hours following the SEC’s announcement, the price of ETH rose to over $3,900 before dropping to $3,759 at the time of publication, according to Cointelegraph Markets Pro data.

Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex  Exchange.