Crypto News – Spot Ether ETFs Receive Official Approval from the SEC

Spot Ether ETFs Now Officially Approved by the SEC

Crypto News- In a second groundbreaking decision this year, the United States Securities and Exchange Commission (SEC) has officially approved spot Ether exchange-traded funds (ETFs) in the U.S. This regulatory milestone was achieved on May 23 when the SEC gave the green light to the 19b-4 filings submitted by several major financial firms, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval paves the way for these firms to list and trade spot Ether ETFs on their respective exchanges, even as speculation continues regarding whether Ether (ETH) might be classified as a security by the SEC.

Further Approval Required for Trading to Begin

Although the 19b-4 filings have been approved, the ETF issuers must still wait for the SEC to approve their S-1 registration statements before the spot Ether ETFs can officially begin trading. Industry experts suggest that this additional approval process could take anywhere from days to several months. Reports indicate that the SEC urged applicants to expedite their 19b-4 filings on May 20, with notable amendments such as the removal of staking seen across multiple filings.

Hashdex’s Application Still Pending

One application that did not receive immediate approval was Hashdex’s spot Ether ETF. Hashdex faces a final SEC decision deadline of May 30, ahead of other firms like Grayscale, Invesco Galaxy, BlackRock, and Fidelity. It remains uncertain whether the SEC will ultimately approve Hashdex’s ETF.

Legislative Context and Market Reaction

This SEC decision came just a day after the U.S. House of Representatives voted in favor of the Financial Innovation and Technology for the 21st Century Act, a piece of legislation aimed at providing clearer regulatory guidance for the cryptocurrency industry. The act seeks to delineate the regulatory responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC), though it still requires Senate approval and the President’s signature to become law.

Market Impact of the Approval

The approval of spot Ether ETFs follows the SEC’s earlier decision on January 10 to approve several spot Bitcoin ETF applications, marking a significant first for the industry. Following the announcement, the price of ETH initially surged to over $3,900 but later settled to around $3,759, as per Cointelegraph Markets Pro data.

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