Ether ETFs and other cryptocurrencies have taken another step towards economic approval. Image source: master1305, via Freepik
The U.S. Securities and Exchange Commission (SEC) has approved applications from various companies regarding ether-based exchange-traded funds (ETFs).
The decision could provide future opportunities for product availability later in the year, though clearance for trade has not been currently granted.
Some of the companies that were approved include BlackRock, Fidelity, Grayscale Investments, VanEck, Franklin Templeton, Ark/21Shares, and Invesco/Galaxy.
A Grayscale spokesperson commented on the regulator’s approval, providing the following statement regarding the approved 19b-4 filing.
“At Grayscale, we appreciate the opportunity to engage constructively with regulators as they review spot ether ETFs, and we remain optimistic about the potential of bringing Ethereum further into the US regulatory perimeter in the ETF wrapper.”
Crypto enthusiasts were bracing for the applications to be denied by the SEC, as the SEC had not engaged with market participants.
James Seyffart, ETF analyst at Bloomberg Intelligence discussed the decision in an interview prior to the announcement, stating how “a week ago, I would’ve said you were a little crazy to think that these ETFs were going to get SEC approval.”
“There is likely to be a gap before we see S-1 approvals and these ETFs begin trading. My guess is that this will take at least a week, but likely more. If history is any guide it could be much longer and be measured in months,” said Seyffart.
“But I personally think the gap will be measured in weeks. Everyone is just guessing right now though.”
SEC Chair Gary Gensler declined to comment on the applications. The SEC further stated while announcing the approvals that the agency would not comment any further on the matter.
The SEC is known for its scepticism of cryptocurrency, having denied spot bitcoin ETFs for over a decade based on fear of “market manipulation”.
The organisation was forced to approve the cryptocurrency last year after Grayscale Investments won a court challenge in 2023.
This growing push for cryptocurrency legitimacy is reflected in wider politics, where this week a UK regulator approved listed cryptocurrency products.
The U.S. House of Representatives has also passed a bill that aims to provide regulatory clarity for cryptocurrencies, which now waits to pass the Senate.
Andrew Johnson, vice president and head of legal at 21Shares, described this as “a significant step in the right direction”.
“This is an exciting moment for the industry at large.”
