Ethereum ETFs Green-Lit for Wall Street Trading
In a stunning reversal, the U.S. Securities and Exchange Commission (SEC) has approved eight applications for spot Ethereum ETFs, paving the way for Ethereum trading on Wall Street. This groundbreaking decision comes just months after the approval of spot Bitcoin ETFs, marking a pivotal moment in the cryptocurrency market.
The approved funds include the Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF. According to Bloomberg ETF expert James Seyffart, it could take a few weeks for the fund managers' S-1 documents to be approved, which will enable the actual trading of these ETFs.
Just a week ago, the likelihood of this approval seemed slim. The SEC had not provided any indication of moving forward with spot ETH ETF applications before the looming May 23 deadline. Moreover, a lawsuit by Consensys against the SEC alleged that the regulator had secretly considered ETH an illegal, unregistered security. This approval indicates that the SEC does not view ETH as a security, a significant victory for crypto advocates given Ethereum's crucial role in the industry.
Interestingly, several ETH ETF issuers had to modify their applications by dropping language related to staking customer ETH. The SEC views financial intermediaries offering staking services as engaging in an illegally unregistered securities scheme. This adjustment likely played a role in securing the approval.
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This landmark decision means that the U.S. now has crypto-based ETFs for the two most prominent digital assets: Bitcoin and Ethereum. The market is optimistic about the impact of this decision, anticipating potential increases in Ethereum's value similar to Bitcoin's previous all-time high post-ETF approval.
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