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  • L Higgins and S Pettigrove

SEC greenlights Ether ETFs

In a significant development for the blockchain ecosystem, the US Securities and Exchange Commission (SEC) has given the greenlight to key regulatory filings for Spot Ether (ETH) exchange-traded funds (ETFs). This milestone represents a significant step toward regulated funds offering the second-largest cryptocurrency by global market capitalisation, ETH.

The SEC’s stance on Ether ETFs has undergone a remarkable shift. Earlier this year, the agency cleared spot Bitcoin ETFs but seemed less engaged with Ether ETF issuers. Recent days have seen a change in approach, leading to the approval of the "19b-4" filings.

However, before investors can start trading these ETFs, there’s a crucial next step. While the 19b-4 forms have been blessed, the final approval hinges on the regulator’s assessment of S-1 documents filed by the prospective ETF issuers. The list of potential Ether ETF issuers includes heavyweights like BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Ark/21Shares, and Invesco/Galaxy.

Naturally, many predict that there will be a time gap before S-1 form approvals and actual ETF trading. While history suggests this could take months, some experts lean toward a shorter timeline, measured in weeks.

Like most "positive" news in cryptocurrency circles, the SEC move has been met with plenty of hype on social media, with many investors believing the news will send various tokens to new all time highs:

However, noting the price of ETH has risen approximately 30% in the last 7 days according to CoinGecko at the time of writing, others believe that ETH will likely not see anywhere near as much positive movement as some investors may be hoping for several reasons:

The SEC’s nod to Ether ETF filings is significant, but the road to trading remains contingent on further approvals. Industry watchers will be eyeing Edgar (the SEC filing platform) closely as Ethereum inches closer to trading on mainstream markets through ETFs.

Written by Luke Higgins and Steven Pettigrove


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