SEC Approves All Spot Ethereum ETFs

The culmination of a tumultuous journey has finally arrived, as the United States Securities and Exchange Commission (SEC) approved the issuance of Spot Ethereum ETF. Indeed, the decision came just five months after the agency granted similar approval to Spot Bitcoin ETFs to start the year.

The decision marks the approval of the country’s second crypto ETF. Additionally, this represents a monumental shift in the overall accessibility of the second largest cryptocurrency to institutional investors.

THE official filing was published briefly by the SEC, but it was withdrawn shortly after by the regulator, probably due to an early leak. The file has since been republished. The SEC initially sought to delay the approval decision as long as possible due to previous sentiment against cryptocurrencies, but the ETF market will now include both Bitcoin and Ethereum. Issuers will still have to wait for their individual filings to be approved.

Read also: SEC Chairman Gary Gensler: “Stay Tuned” on Ethereum ETF Decision

Spot Ethereum ETFs approved by the SEC

Following the approval of Spot Bitcoin ETFs in early 2024, the market has been anticipating what the next cryptocurrency could be. Naturally, all eyes are on Ethereum. Although this seems likely, the SEC’s general sentiment has diminished its optimism that such an approval is possible.

This changed significantly at the start of the penultimate week of May. Seemingly out of nowhere, Bloomberg increased the chance of approval from 25% to 75%. Subsequently, the market began to anticipate the imminent arrival of the Ethereum-based investment offering.

Today, that anticipation has been rewarded as the SEC has approved all Spot Ethereum ETFs. The landmark move means the United States now offers crypto-based ETFs for the world’s two most important digital assets. Furthermore, it is an essential part of a greater transition from the country’s perspective on assets.

Read also: Top 3 Cryptocurrencies to Buy for 5X Gains Ahead of Ethereum ETF Approval

Conversely, applications for Ether-based ETFs have been submitted by a plethora of issuers. Specifically, VanEck, ARK21 Shares, Hashdex, Invesco Galaaxy, Franklin Templeton, Fidelity and the world’s largest asset manager, BlackRock. Of these companies, VanEck faced the most immediate approval deadline.

What’s next for Spot Ethereum ETFs?

Now that Ethereum ETF Forms 19b-4 have been approved, issuers must wait for their Forms S-1 to be approved before they can begin trading the assets. These forms are necessary to publicly propose new titles. This process may take longer for the SEC to process each depositor, especially if the regulator remains dissatisfied with Ethereum ETFs. Based on the Bitcoin ETF timeline, this process could take anywhere from a few weeks to a few months.

All eyes are on how the situation could affect the market as a whole. Bitcoin’s supply helped the asset reach an all-time high in just three months. Many experts are predicting similar developments for Ethereum, with growing ETF anticipation leading the asset to rise nearly 30% over the past 7 days, according to CoinMarketCap.

Source