SEC Approves Listing and Trading of Spot Ether ETFs on U.S. Exchanges
In Brief
The SEC has approved the listing and trading of spot Ether ETFs from various issuers, allowing them to be listed and traded on U.S. exchanges.
U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of spot exchange-traded funds (ETFs) tracking Ether, the world’s second-largest cryptocurrency.
According to a May 23 filing, the SEC gave regulatory approval to rule changes from several issuers, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This allows spot Ether ETFs from these firms to be listed and traded on U.S. exchanges.
The landmark decision came just four months after the SEC approved the spot for Bitcoin ETFs, which was another pioneering moment for the crypto industry.
“This approval marks a major milestone and paves the way for greater mainstream adoption of Ethereum,” said James Seyffart, an ETF analyst. “However, the ETFs may not begin trading immediately,” he also noted.
While the 19b-4 rule change approvals have been granted, Seyffart explained that issuers still need the SEC to provide effectiveness for their S-1 registration statements before the funds can officially launch. This final step could take anywhere from days to weeks or potentially months.
The SEC’s greenlight follows speculation that the regulator has been examining whether to designate Ether as a security. The approval also comes one day after the U.S. House passed crypto legislation aimed at clarifying industry regulation.
Ether, the native cryptocurrency of the Ethereum blockchain, has seen significant growth and adoption for uses like decentralized finance (DeFi) and non-fungible tokens (NFTs). The new spot ETFs will provide investors with a regulated, convenient way to gain exposure to the digital asset.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
More articles
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
