The Wait Is Over: SEC Greenlights Spot Ethereum ETFs, Hangover As Crypto Is Winning
In a landmark decision, the US Securities and Exchange Commission (SEC) has approved the launch of Ethereum Exchange Traded Funds (ETFs).
The move comes five months after the agency gave the green light to declassify Bitcoin ETFs, marking a major shift in the regulatory landscape for crypto in the US.
TLDR
Securities and Exchange Commission (SEC) Approves Launch of Spot Ethereum ETFs Approval Comes Five Months After SEC Gives Green Light to Spot Bitcoin ETFs Spot Ethereum ETFs May Not Start Trading Until July or August VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest and 21Share, Invesco and Galaxy, and BlackRock's iShares Ethereum Trust, have filed for Ethereum ETFs. The approval of the Ethereum ETF and the passage of the FIT21 crypto bill signal a shift in the Biden administration's stance on crypto, following former President Trump's pledge to support the industry.
The SEC's approval of Ethereum ETFs is expected to bring significant institutional capital into the Ethereum market.
Geoff Kendrick, head of digital assets research at Standard Chartered, predicts $15 billion to $45 billion in revenue for these ETFs in the 12 months following their launch.
This increased institutional participation could boost Ethereum's value and further solidify its position as a leading digital asset.
@Eric Balchunas and I can't see it on the front end website but Phoenix is always right in my experience.
— James Seyff (@JSeyff) May 23, 2024
However, despite SEC approval, the Spot Ethereum ETF will not begin trading until July or August, according to a Galaxy Digital report.
The delay is due to the need for additional regulatory approvals and the funds' greater risk profile compared to Bitcoin ETFs.
The process of approving the funds and listing them on trading platforms may take longer due to the various decentralized applications (dapps) built on the Ethereum network, which may require additional disclosures.
A number of prominent issuers have filed applications for Ethereum ETFs, including VanEyck, Fidelity, Franklin, Greyscale, Bitwise, ARK Invest and 21Share, Invesco and Galaxy and BlackRock's iShares Ethereum Trust.
These ETFs are intended to be listed on the Nasdaq, NYSE Arca and Cboe BZX exchanges.
To address SEC concerns, potential issuers have updated their records to ensure they are not taking ETH for production, a practice that has drawn scrutiny from regulators.
The approval of Ethereum ETFs comes with broader changes to the regulatory environment for cryptocurrencies in the US. Earlier this week, the House of Representatives passed the FIT21 crypto bill to establish a comprehensive regulatory framework for digital assets.
The approval of this bill, along with the SEC's approval of the Ethereum ETF, signals a shift in the Biden administration's stance on crypto following former President Trump's pledge to support the crypto industry.
The crypto community has been monitoring developments around Ethereum ETFs in recent weeks, speculating whether their approval is strengthening.
Bloomberg analysts Eric Balchunas and James Seifert increased their position on the Ethereum ETF from 25% to 75% this month, further fueling market optimism.
The approval of Spot Ethereum EFS is another milestone in the ongoing evolution of the cryptocurrency industry. After repeated attacks from controllers including Operation Choke Point 2.0 and Gary Gensler and Elizabeth Warren's personal anti-Cryto crusade, it seems the tide is finally turning in our favor.
In the year 2024 is shaping up to be one of the biggest years in history for crypto.
let go!
