U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of spot exchange-traded funds (ETFs) tracking Ether, the world’s second-largest cryptocurrency.
According to a May 23 filing, the SEC gave regulatory approval to rule changes from several issuers, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This allows spot Ether ETFs from these firms to be listed and traded on U.S. exchanges.
BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening.h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
— James Seyffart (@JSeyff) May 23, 2024
The landmark decision came just four months after the SEC approved the spot for Bitcoin ETFs, which was another pioneering moment for the crypto industry.
“This approval marks a major milestone and paves the way for greater mainstream adoption of Ethereum,” said James Seyffart, an ETF analyst. “However, the ETFs may not begin trading immediately,” he also noted.
While the 19b-4 rule change approvals have been granted, Seyffart explained that issuers still need the SEC to provide effectiveness for their S-1 registration statements before the funds can officially launch. This final step could take anywhere from days to weeks or potentially months.
The SEC’s greenlight follows speculation that the regulator has been examining whether to designate Ether as a security. The approval also comes one day after the U.S. House passed crypto legislation aimed at clarifying industry regulation.
Ether, the native cryptocurrency of the Ethereum blockchain, has seen significant growth and adoption for uses like decentralized finance (DeFi) and non-fungible tokens (NFTs). The new spot ETFs will provide investors with a regulated, convenient way to gain exposure to the digital asset.
The post SEC Approves Listing and Trading of Spot Ether ETFs on U.S. Exchanges appeared first on Metaverse Post.