SEC Approves First Spot ETH ETFs

The SEC just greenlit the first spot ETH ETFs
May 23, 20241 min read

The U.S. Securities and Exchange Commission (SEC) just approved eight spot Ethereum ETFs proposed by major institutions like BlackRock, Franklin Templeton, Fidelity, VanEck, and beyond. The landmark decision follows the Commission's approval of spot Bitcoin ETFs in January 2024.

What's the scoop?

  • The SEC approved the necessary 19b-4 forms for these ETFs, but issuers still need their S-1 registration statements approved before trading can begin, and this process may take weeks.
  • The surprise approval followed a sudden increase in communication between the SEC and issuers, leading to a quick turnaround of the 19b-4 forms.
  • Bipartisan support from House lawmakers and the changing landscape around crypto in the U.S. likely played a role in the SEC's decision. Politically, the approval marks a major victory for crypto advocates in America.
  • While Ethereum ETFs are not expected to attract as much capital as their Bitcoin counterparts, inflows could be in the billions of dollars within the first few years, a strong start for any ETF launch.

Bankless take:

The SEC’s approval of spot ETH ETFs is the latest high-profile signal that the regulatory environment for crypto in the U.S. is evolving rapidly for the better.

Notably, the approval may also pave the way for further innovative financial products linked to Ethereum, and it could trigger a surge in institutional interest and capital inflows into ETH and the wider crypto market.

Moving forward, it will be key to track how these ETFs perform and what further regulatory adjustments might emerge in the U.S. in response to this historic crypto decision.

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