The US Securities and Exchange Commission (SEC) has delivered a landmark decision, greenlighting spot Ether ETFs (exchange-traded funds). This is a significant development for the cryptocurrency industry following the approval of spot Bitcoin ETFs earlier this year.
The SEC approved 19b-4 filings from eight major investment firms, including VanEck, BlackRock, Fidelity, and Grayscale. These approvals allow them to list and trade spot Ether ETFs on their respective exchanges. Hashdex’s spot Ether ETF application remains under review by the SEC, with a final deadline of May 30th. This SEC approval comes a day after the House of Representatives voted in favor of legislation to clarify cryptocurrency regulations.
The price of Ether (ETH) initially jumped above $3,900 following the news but has since settled around $3,759. This decision follows the SEC’s approval of several spot Bitcoin ETFs in January 2024.
The approval of spot Ether ETFs provides investors with a regulated way to gain exposure to Ethereum without directly purchasing and holding the cryptocurrency. This decision could signify a shift in the SEC’s stance towards cryptocurrencies, potentially leading to further regulatory developments in the future.
The fate of Hashdex’s spot Ether ETF application remains unclear. The long-term impact of this decision on the broader cryptocurrency market is yet to be seen.
The SEC’s approval of spot Ether ETFs marks a significant milestone for the cryptocurrency industry. This decision could pave the way for wider institutional adoption of Ethereum and potentially influence the future regulatory landscape for cryptocurrencies.
