Key Points
- The US SEC decided to approve the listing of Ethereum ETFs.
- SEC allows Cboe, Nasdaq, and NYSE to list ETH ETFs.
The crypto industry marks another important milestone, as the SEC decided to approve the listing of Ethereum ETFs. The decision comes following multiple optimistic predictions during the past days with investors raising the odds for the approval.
A few hours ago, Bloomberg reported that the US SEC has just paved the way for trading Ethereum ETFs that invest directly in the crypto, opening the door for new investment options for the crypto industry.
The SEC reportedly signed off on a proposal by exchanges including Cboe Global Markets, NYSE, and Nasdaq to list products tied to ETH.
Even if the move seemed unlikely at first, now it removes a key hurdle for ETH ETFs trading in the US. Now, according to the same reports, issuers need a separate sign-off from the regulator, and there are no deadlines for this decision so far.
Investment companies including VanEck, ARK Investment Management, Invesco Galaaxy, Franklin Templeton, BlackRock Inc, and Fidelity Investments are all in a race to launch their ETH ETFs.
The official filing has been published by the SEC.
US SEC finds proposals consistent with rules and regulations
The notes state that after careful review, the Commission finds that the proposals are consistent with the Exchange Act, rules, and regulations.
They also noted that the Commission finds that the Proposals are consistent with the section of the Exchange Act that requires that the Exchange’s rules be designed to “prevent fraudulent and manipulative acts and practices” and, “in general, to protect investors and the public interest.”
The notes also brought up the consistency with the section that sets forth Congress’ finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to ensure “the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities.”
The SEC approved the Ethereum spot ETF proposal of Grayscale and Bitwise to trade on the NYSE stock exchange; iShares (BlackRock) on Nasdaq; along with VanEck, ARK/21 Shares, Invesco, Fidelity and Franklin Templeton on the Cboe BZX stock exchange.
SEC’s decision involves financial policy implications
Bloomberg reported that the SEC’s announcement on May 23 is laced with US financial policy implications.
SEC Chair Gary Gensler has been ambiguous about his views on whether ETH is a security which triggered concerns that the regulator might not approve the crypto products.
Crypto enthusiasts are worried that Gensler and the agency might try to subject ETH and projects based on the Ethereum blockchain to the SEC’s expensive and tough investor-protection rules.
On the other hand, the Commodity Futures Trading Commission, which is the US’s other market regulator with jurisdiction over derivatives, has stated that it does not consider Ethereum to be a security.
The CFTC allowed trading of ETH futures by CME Group Inc.
Ahead of the decision, the US SEC has begun discussions involving S-1 registration statements with prospective Ethereum ETF issuers.
The SEC’s decision to approve Ethereum ETFs comes after the regulator approved Bitcoin ETFs back in January.
Recently, Standard Chartered Bank Head of FX Research and Digital Assets Research Geoff Kendrick showed his optimism regarding the SEC’s approval for the crypto products and said that after the nod from the regulator, Ethereum ETFs could drive inflows between 2.39 million and 9.15 million ETH (between $15 billion and $45 billion) in the first 12 months post-approval.
