In a landmark decision, the US SEC approved eight spot Ethereum (ETH) exchange-traded fund ETFs, including ETFs from BlackRock and Fidelity..
This approval marks another milestone in the cryptocurrency market, following the first placement of a Bitcoin ETF.
SEC approves 8 Ethereum ETFs
The SEC has permitted 19b-4 forms for these ETFs. However, the issuer still needs approval of the S-1 registration statement, which may take weeks or months. Bloomberg ETF analyst James Seyffart noted that this process has historically taken more than three months.
The SEC’s approval was unexpected due to the lack of prior interaction with the ETF issuer. The SEC’s sudden request for Form 19b-4 has sparked speculation about the reasons for this change.
Some insiders suggest political pressure may have influenced the decision. Prior to approval, a bipartisan group of lawmakers urged the SEC to approve such an ETF, arguing that the Bitcoin ETF approval set a precedent for Ethereum.
With the news of approval, the price of ETH increased from $3,675 to $3,856. However, at the time of this writing, it is currently trading at $3,816.
Read more: Ethereum ETF explained: What it is and how it works
Following this announcement, stakeholders expressed expectations for further growth in the industry. Chainlink co-founder Sergey Nazarov commented on the Ethereum ETF approval scene.
“The approval of the Ethereum ETF is the second major step forward for the cryptocurrency industry. This proves that capital markets are now fully participating in the cryptocurrency industry for the largest user base and most widely used products,” Nazarov told BeInCrypto.
He also pointed out the importance of ensuring that assets utilizing smart contracts receive formal approval from the SEC.
“One of the most important aspects of this ETF approval is that it shines a light on the potential of smart contracts and decentralized applications (dApps), which are important use cases for Ethereum. In our daily work with global banks, asset managers and financial market infrastructure, we continue to observe increased interest in smart contracts, adoption of blockchain technology, and growing interest in cryptocurrencies as a legitimate asset class,” Nazarov added. Yes.
Read more: How to Invest in Ethereum ETF
The approval of this Ethereum ETF marks a pivotal moment for the cryptocurrency sector. This will open the door to increased investment and set a precedent for future digital asset regulation.
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