Ethereum ETFs Approved by SEC, Awaiting Trading Launch

The U.S. Securities and Exchange Commission (SEC) has taken a crucial step towards approving Ether spot ETFs. This milestone, reached just days after unexpected engagement with issuers, signals a potential shift in the crypto industry. “A week ago, I would’ve said you were a little crazy to think that these ETFs were going to get SEC approval,” remarked James Seyffart, an ETF analyst at Bloomberg Intelligence.

SEC Greenlights Regulatory Filings

The SEC has given the go-ahead for multiple 19b-4 applications, allowing Ether spot ETFs to be listed on national securities exchanges. This approval came swiftly after the SEC began rapid discussions with issuers, marking a notable turnaround. However, the ETFs are not yet available for trading. The issuers’ S-1 registration statements must still go into effect, a process that experts predict will take some time.

Launch Timeline Uncertain

Bloomberg’s James Seyffart noted, “There will be days (at a minimum), likely at least weeks, and potentially months between approval and launches here.” This timeline indicates a waiting period before investors can begin trading these ETFs. The approval process is reminiscent of the Bitcoin spot ETFs, which faced a lengthy legal battle before their eventual launch in January.

Prominent issuers include BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Ark/21Shares, and Invesco/Galaxy. A Grayscale spokesperson stated, “At Grayscale, we appreciate the opportunity to engage constructively with regulators as they review spot Ethereum ETFs, and we remain optimistic about the potential of bringing Ethereum further into the US regulatory perimeter in the ETF wrapper.”

Regulatory Process Still Ongoing

Despite the SEC’s approval of the 19b-4 filings, the S-1 forms filed by issuers are still under review. This step is crucial before these ETFs can be launched. Seyffart speculated that the gap between approval and trading might take weeks or even months, based on historical precedents.

The rapid engagement by the SEC has surprised many in the industry. Just a few days ago, the prospects for Ether ETFs seemed unlikely. The SEC’s sudden approval of the 19b-4 applications sent shockwaves through the crypto market. An SEC spokesperson stated that the agency would not comment beyond the published order.