After many months of lobbying and permutations, the United States Securities and Exchange Commission has finally approved Spot Ethereum Exchange Traded Funds (ETFs). This decision is coming five months after the US SEC approved Bitcoin ETFs leading to a large inflow of capital into the crypto industry.
According to SeeerGuru, the decision marks the approval of the United States’ second crypto-based ETF and will boost accessibility and the overall status of Ethereum, the second-largest crypto asset by price and market capitalization.
The United States SEC last night uploaded a document on their website that spelled out their decision to approve Spot Ethereum ETF as a viable product sending the entire crypto world into a frenzy.
“After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange,” the document states
The new spot Ethereum ETF issuers are mostly made up of previous Bitcoin ETF issuers and a couple of new entrees.
The spot Ethereum ETF issuers include VanEck, ARK21 Shares, Hashdex, Invesco Galaxy, Franklin Templeton, Fidelity, and the world’s largest asset manager, BlackRock.
The approval of the spot Ethereum ETF was the biggest news in the crypto space this month and drew a lot of reaction from various crypto analysts and experts.
James Seyffart a Bloomberg analyst with a focus on ETFs and Cryptocurrency was among the first persons to break the news on Twitter.
“BOOM! APPROVED! There it is. The SEC just approved spot Ethereum ETFs. What a turn of events. It is really happening.” James posted on X.
James also offered some clarification on when trading in spot Ethereum ETF can commence. He stated that the US SEC only approved the 19-b4 files of the issuers and additional approval for S-1 documents is needed to complete the process.
The S-1 documents approval might drag on for weeks or even months.
According to analysts, the approval of spot Ethereum ETFs is expected to result in a massive inflow of capital into the Ethereum space.
Standard Chartered Head of Digital Assets Research Geoff Kendrick has predicted inflows of $15 to $45 billion in the first 12 months.
This influx of capital would definitely lead to a bull run in the crypto market with prices of crypto assets expected to go up and the overall credibility of cryptocurrency receiving a significant boost.
What To Know
- The approval of Ethereum ETFs and the passage of the FIT21 crypto bill suggest a shift in the Biden Administration’s stance on crypto, following former President Trump’s pledge to support the industry and foster a business-friendly environment in the US.
- This latest development in the crypto space means that the United States now features crypto-based ETFs for Bitcoin and Ethereum, the two largest crypto assets in the world.