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The U.S. Securities and Exchange Commission (SEC) has granted approval for multiple applications to launch spot Ethereum ETFs. Analysts suggest that this decision signifies the SEC’s shift away from classifying ETH as a security. The cryptocurrency community is optimistic that this action will establish a benchmark for other digital assets.
The SEC has authorized eight 19b-4 filings for the creation of exchange-traded funds (ETFs) linked to Ethereum (ETH) spot prices from firms including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
Additionally, ETF issuers must still obtain the SEC’s approval for S-1 registration statements before they can officially commence trading these funds. Analysts observe that this process may take several days or potentially months. It was also noted that the SEC did not approve all submitted applications, as it declined to authorize the issuance of an ETF by Hashdex.
Industry experts assert that the SEC’s endorsement of spot Ethereum ETFs serves as an implicit acknowledgment that ETH is not a security. James Seyffart, an Analyst at Bloomberg ETF, posits that the regulator has indicated it will not categorize ETH as a security. Justin Browder, a Digital Asset Lawyer, concurs, stating that once Ethereum ETFs receive approval on S-1 applications, it will ultimately resolve the ongoing debate regarding ETH’s classification as a security.
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Previously, the SEC conducted an investigation into Ethereum to determine whether ETH should be classified as a security.
Nevertheless, many experts concur that the approval of Ethereum ETFs does not safeguard participants in ETH staking. They caution that the SEC may still classify staked ETH as a security. This concern is supported by the SEC’s guidance for Ethereum ETF issuers, released shortly before the approval, which emphasized the necessity to exclude staking.
The regulator is actively overseeing the provision of staking services for cryptocurrencies. In February of last year, the crypto exchange Kraken was compelled to terminate its staking program at the SEC’s request.
Some members of the crypto community also speculate that the approval of Ethereum ETFs could set a precedent for other tokens. Adam Cochran, a Partner at Cinneamhain Ventures, suggests that the SEC’s decision to classify ETH as a commodity might influence similar cryptocurrency projects. However, Scott Johnson, a Financial Attorney, argues that the SEC has entirely avoided addressing the issue of ETH’s status, and an official statement on this matter should be anticipated soon.
The approval of spot Ethereum ETFs occurred four and a half months after the SEC authorized spot Bitcoin ETFs. Just under a month ago, Hong Kong’s financial regulator approved spot Bitcoin and Ethereum ETFs, which did not gain traction among local investors.
Сообщение SEC Approves Spot Ethereum ETFs in U.S. появились сначала на CoinsPaid Media.
