In a significant ruling this year, the United States Securities and Exchange Commission (SEC) has approved the introduction of spot Ether exchange-traded funds (ETFs) in the country. On May 23, the SEC sanctioned the 19b-4 filings from companies such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, thereby permitting the necessary rule changes for these spot Ether ETFs to be listed and traded on their exchanges. This decision comes amid ongoing speculation about whether the SEC might classify Ether (ETH) as a security.
Although the SEC has approved the 19b-4 filings, ETF issuers must still obtain approval for their respective S-1 registration statements before spot Ether ETFs can officially commence trading. According to industry analysts, this approval process could take anywhere from days to months. The SEC reportedly urged applicants to expedite their 19b-4 filings on May 20. A key amendment across several filings is the removal of staking.
Notably, the SEC has not yet approved Hashdex’s spot Ether ETF application, which has a final deadline of May 30, ahead of Grayscale, Invesco Galaxy, BlackRock, and Fidelity. It remains uncertain whether the SEC will ultimately approve Hashdex’s ETF.
This SEC decision follows a vote in the United States House of Representatives favoring legislation aimed at providing greater regulatory clarity for the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act, intended to delineate the roles of the SEC and the Commodity Futures Trading Commission, still requires Senate approval and the President’s signature to become law.
The approval of spot Ether ETFs comes four and a half months after the SEC approved several spot Bitcoin ETF applications on January 10, a milestone for the industry. Following the SEC’s announcement, ETH prices surged to over $3,900 before dropping to $3,759 at the time of publication.
May 2024, Cryptoniteuae
