US SEC Approves Eight Ethereum ETFs, But Trading Won’t Start Right Away
In a significant move, the U.S. Securities and Exchange Commission (SEC) has approved several Ethereum ETFs, potentially launching as soon as mid-June, setting a new precedent in the crypto investment landscape.
In a groundbreaking decision, the U.S. Securities and Exchange Commission (SEC) has approved eight Ethereum ETFs. This development follows the introduction of Bitcoin ETFs and marks a significant milestone for the cryptocurrency market, particularly for assets associated with smart contracts and decentralized applications.
The approval encompasses major financial institutions such as BlackRock, Fidelity, and several others, poised to introduce these ETFs to the market, pending final S-1 registration statement approvals. These are anticipated to conclude swiftly, with speculation about launches possibly by mid-June.
Bloomberg ETF analysts James Seyffart and Eric Balchunas highlighted that while the S-1 approvals could span from a few weeks to five months, historical precedents suggest a likely expedited process. Notably, the SEC’s Division of Trading and Markets issued these approvals, a move that can be challenged by SEC commissioners within ten days, although such a challenge is deemed unlikely.
The approval was somewhat unexpected, given minimal prior engagements between the SEC and ETF issuers. It appears that recent political pressures and a bipartisan push from lawmakers may have influenced the decision, citing the establishment of a precedent with Bitcoin ETFs.
The Ethereum ETFs, once operational, are expected to capture between 10% to 20% of the flows seen in Bitcoin ETFs, which have amassed significant inflows since their inception. This translates to a potential $2.66 billion in inflows for Ethereum ETFs based on current market behaviors.
Market response was swift, with Ethereum’s price climbing from $3,675 to a peak of $3,856 before stabilizing around $3,816. The industry is buzzing with expectations of enhanced growth and increased legitimacy for cryptocurrencies as an asset class.
This landmark approval not only paves the way for broader investment in digital assets but also reinforces the evolving regulatory landscape accommodating the burgeoning crypto market.
