The United States Securities and Exchange Commission (SEC) has made a major decision that is set to shake up the cryptocurrency market. The SEC has officially approved spot Ether exchange-traded funds (ETFs), marking a significant milestone for the industry.
This approval, announced on May 23, covers filings from major financial firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This means that these firms will now be able to list and trade spot Ether ETFs on their respective exchanges.
However, before these ETFs can officially start trading, each issuer must still secure SEC approval for their S-1 registration statements. This process could take anywhere from several days to a few months, according to Bloomberg analysts.
The approval comes at a time of speculation about the SEC’s stance on whether Ether should be classified as a security. The recent decision to approve spot Ether ETFs follows the SEC’s earlier approval of several spot Bitcoin ETF applications on January 10, a historic first for the industry.
The price of Ether (ETH) surged following the announcement, reaching over $3,900 before settling at $3,801.80 at the time of writing. This news has generated excitement among crypto enthusiasts and investors alike.
The SEC’s decision coincides with a recent vote by the US House of Representatives in favor of the Financial Innovation and Technology for the 21st Century Act. This legislation aims to clarify the roles of the SEC and the Commodity Futures Trading Commission, but it still requires Senate approval and the President’s signature to become law.
Overall, the approval of spot Ether ETFs is a major win for the crypto industry and could pave the way for further mainstream adoption of digital assets. Stay tuned for more updates on this developing story.
