KEY POINTS
The Securities and Exchange Commission (SEC) has finally approved the listing of Ether exchange-traded funds (ETFs).
Five months ago, the SEC set a precedent by approving spot Bitcoin ETFs. Now, with this latest approval, investors have the opportunity to access Ethereum’s native token, ETH, through regulated financial products.
Who are the Beneficiaries?
Major financial firms, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK21Shares, Invesco Galaxy, and Bitwise, stand to gain from this approval.
The SEC’s ruling has an indirect effect on the ongoing discussion regarding whether Ether should be categorized as a security. The approval of the ETFs could suggest that it does not view Ether as a security, a viewpoint shared by numerous industry professionals.
While the green light for the 19b-4 filings marks an important achievement, the applicants are still awaiting the nod from the SEC on their S-1 registration statements, which is essential before trading can commence.
Ethereum (ETH) Surges Post Spot Ether ETFs Approval
The SEC’s approval came a day after the U.S. House of Representatives voted in favor of a bill designed to improve regulatory transparency within the cryptocurrency sector. The Financial Innovation and Technology for the 21st Century Act seeks to clarify the roles of the SEC and the Commodity Futures Trading Commission.
Following the announcement of the approval, the price of ETH initially surged by 11%, from $3,531 to $3,941, before settling at $3,781.
Bitcoin and Ethereum have set the pace for other top-ranking cryptocurrencies. lead in the race for spot ETFs. Meanwhile, analysts believe that this latest approval suggests the SEC’s change of stance on the adoption of digital assets, particularly cryptocurrency.
