Ethereum ETFs Clear Major Hurdle, Though Not Yet Cleared for Trading by the SEC

Ethereum spot exchange-traded funds (ETH) took a big leap toward reality on Thursday after the U.S. Securities and Exchange Commission approved key regulatory documents tied to them, a milestone for the second-largest cryptocurrency. big.

However, they are not yet authorized to trade. The SEC gave its approval to so-called Form 19b-4s linked to ETFs, but the regulator must approve their S-1 filings before investors can buy them.

The approval comes after a surprising change by the markets regulator. After liquidating spot bitcoin ETFs earlier this year, the SEC did not appear to interact much with ether ETF issuers. That changed in recent days.

"A week ago, I would have said I was a little crazy to think these ETFs were going to get SEC approval," James Seyffart, an ETF analyst at Bloomberg Intelligence, said in an interview before the decision.

In a statement, a Grayscale spokesperson confirmed that the regulator had approved its 19b-4.

“At Grayscale, we appreciate the opportunity to constructively engage with regulators as they review Ethereum spot ETFs, and we remain optimistic about the potential to bring Ethereum further into the US regulatory perimeter in the ETF wrapper.” , they said.

Potential issuers of spot ether ETFs include BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Ark/21Shares, and Invesco/Galaxy.

While the approval of 19b-4 filings suggests that regulators are willing to allow issuers to bring a spot ether ETF to market, it does not guarantee that they will ultimately approve the final S-1 forms filed by all issuers.

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