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Crypto: Ethereum ETFs approved by the SEC!
5:30 ▪ 4 min reading ▪ by Luc Jose A.
The crypto ecosystem is in turmoil following the surprising announcement from the SEC: the approval of Ethereum ETFs. This decision, which could redefine institutional investors’ access to digital assets, comes at an important time for the market. While Bitcoin already led the way with its own ETFs earlier this year, Ethereum, the second largest cryptocurrency by market capitalization, is poised to gain unprecedented exposure in traditional financial markets.
Historic approval of Ethereum ETFs
Last night, the United States Securities and Exchange Commission (SEC) took a major step forward by approving multiple Ethereum ETF applications, marking a significant breakthrough for the second-largest crypto. Among the companies that have received SEC approval are financial giants such as BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Ark/21Shares and Invesco/Galaxy. This approval concerns the 19b-4 forms, essential for the constitution of these funds, but there remains a crucial step: the approval of the S-1 forms, necessary before the ETFs can be marketed.
James Seyffart, analyst at Bloomberg, strong points the unexpected nature of this decision by stating: “A week ago, I would have said you were a little crazy to think that these ETFs would get approval from the SEC. » This remark highlights the speed and unpredictability of the SEC’s change in position, which until recently seemed reluctant to engage in discussions with Ethereum ETF issuers.
Grayscale, one of the companies benefiting from this approval, expressed its satisfaction through a spokesperson: “At Grayscale, we appreciate the opportunity to collaborate constructively with regulators in their review of Ethereum ETF, and we remain optimistic about the potential for Ethereum to be introduced in the United States. regulatory framework via ETFs.
Towards a new investment paradigm
Although the approval of Forms 19b-4 suggests a willingness by regulators to allow Ethereum ETFs to be marketed, it does not guarantee final approval of Forms S-1. According to James Seyffart, “There will likely be a delay before we get S-1 approvals and these ETFs begin trading. My estimate is that it will take at least a week, but probably more. If history is to be believed, it could take much longer and be measured in months. » This statement reflects the uncertainty that still hangs over the exact timetable for launching these new financial products.
Regardless, the SEC’s approval of Ethereum ETFs is not only a significant milestone for the issuers of these products, but it could also have profound implications for the crypto market as a whole. The move follows the successful introduction of Bitcoin ETFs in January, which quickly attracted $13.3 billion in net inflows, setting performance records for ETFs upon launch. The arrival of Ethereum ETFs could see similar success, attracting a new influx of capital to the second-largest cryptocurrency.
This reversal by the SEC comes amid pro-crypto movements within the US Congress, where several recent votes have shown growing support for pro-crypto legislation. For example, last week the Senate passed a resolution to repeal Staff Accounting Bulletin 121, making it easier for regulated banks to offer cryptocurrency custody services. Additionally, the House of Representatives approved the Financial Innovation and Technology for the 21st Century (FIT21) Actwhich should bring much-needed legal clarity to cryptocurrencies.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.