Gushiken Yona
The U.S. Securities and Exchange Commission (SEC), in a landmark decision, has approved eight spot Ethereum ETFs, signaling a significant leap forward for the cryptocurrency industry. This decision, welcomed with both optimism and caution, highlights the growing acceptance of digital assets in mainstream finance.
Landmark Decision for the Crypto Industry
The ETFs, approved under an omnibus order, come from prominent financial institutions including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. This approval follows closely on the heels of the SEC’s historic approval of spot Bitcoin ETFs four months ago.
The approved ETFs will be listed and traded on major exchanges: NYSE Arca, Nasdaq, and Cboe BZX Exchange. However, the ETF issuers must have their S-1 registration statements go effective before trading can commence, a process that the SEC has only recently begun discussing with them. Analysts speculate that trading could begin within weeks.
Analyst Insights: Approval and Process
Bloomberg Intelligence ETF Analyst James Seyffart noted that the SEC’s approval was granted via delegated authority, meaning there won’t be public commissioner votes. However, any commissioner, such as Caroline Crenshaw, could challenge the decision and request a review.
Seyffart added, “Essentially we don’t know exactly what happened or who decided what votes. But I’d bet my life no matter what the breakdown actually is. Whether 3-2 (like it was for Bitcoin when Gensler was the deciding vote) or 4-1, Crenshaw would vote against based on her dissent of BTC ETFs.”
He clarified that this approval does not mean immediate trading: “This is just 19b-4 approval. Also needs to be an approval on the S-1 documents which is going to take time. We’re expecting it to take a couple weeks but could take longer.
Should know more within a week or so!” Seyffart emphasized the typically lengthy process: “Typically this process takes months. Like up to 5 months in some examples but Eric Balchunas and I think this will be at least somewhat accelerated. #Bitcoin ETFs were at least 90 days. Will know more soon.”
Broader Regulatory Implications
Adam Cochran, founder and general partner at Cinneamhain Ventures, partner at Cinneamhain Ventures, emphasized the broader implications of the SEC’s approval, highlighting a significant regulatory shift. According to Cochran, “By the way, the most important things here isn’t the ETF, it’s: -Total change in stance by admin, that forces Gensler to concede. -ETH is a commodity, even with its current attributes. -That means we can extrapolate to A LOT of other projects what elements matter in security. Today a lot of things probably clearly became commodities, even if they don’t know it yet.”
This landmark decision by the SEC is a crucial step toward the broader acceptance and integration of cryptocurrencies into the mainstream financial system, setting the stage for future developments and regulatory shifts in the digital asset space.
