SEC Approves All Spot Ethereum ETFs

The culmination of a tumultuous journey has finally arrived, as the US Securities and Exchange Commission (SEC) has approved the issuance of Spot Ethereum ETFs. Indeed, the decision arrived just five months after the agency granted similar approval to the Spot Bitcoin ETFs to start the year.

The decision marks the approval of the country’s second crypto-based ETF. Moreover, it represents a monumental shift in the overall accessibility of the second-largest cryptocurrency to institutional investors.

The official filing was published briefly by the SEC, but it was taken down shortly after by the regulator, possibly due to being leaked early. The filing has since been republished. The SEC initially looked to delay the approval decision as long as they could due to previous sentiment against cryptocurrencies, but now the ETF market will include both Bitcoin and Ethereum. Issuers will still have to wait for their individual filings to be approved.

Spot Ethereum ETFs Approved by SEC

Following the approval of Spot Bitcoin ETFs at the start of 2024, the market anticipated what cryptocurrency could be next. Naturally, all eyes are directed toward Ethereum. Although it appears likely, the overall sentiment of the SEC has diminished optimism that such an approval could take place.

That changed significantly at the start of May’s second to last week. Seemingly out of nowhere, Bloomberg increased the approval odds from 25% to 75%. Thereafter, the market began anticipating the impending arrival of the Ethereum-based investment offering.

Now, that anticipation has been rewarded as the SEC has approved all Spot Ethereum ETFs. The landmark decision means that the United States now features crypto-based ETFs for the two most prominent digital assets in the world. Moreover, it is a critical part of a greater transition for the country’s perspective on the assets.

Conversely, applications for the Ether-based ETFs have been submitted by a plethora of issuers. Specifically, VanEck, ARK21 Shares, Hashdex, Invesco Galaaxy, Franklin Templeton, Fidelity, and the world’s largest asset manager, BlackRock. Of those firms, VanEck faced the most immediate approval deadline.

What Is The Next Step For Spot Ethereum ETFs?

Now that Ethereum ETF 19b-4 forms have been approved, issuers must wait for their S-1 forms to be approved before trading of the assets can commence. These forms are necessary to offer new securities publicly. This process may take more time for the SEC to process for each filer, especially if the regulator still holds any dissatisfaction for Ethereum ETFs. Based on the timeline for the Bitcoin ETFs, this process could take anywhere from weeks to months.

All eyes are on how the situation could affect the market as a whole. Bitcoin’s offering led the asset to reach an all-time high in just three months. Many experts predict similar developments for Ethereum, with building anticipation of the ETF leading the asset to increase almost 30% over the last 7 days, according to CoinMarketCap.