US Securities and Exchange Commission (SEC) Accepted applications On Thursday, the Nasdaq, CBOE and NYSE to list a spot exchange-traded fund (ETF) tied to the price of Ethereum (ETH).
The decision will likely allow these products to begin trading later this year, which would be a significant win for the cryptocurrency industry.
Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, are hoping to launch Ether ETFs following SEC approval. Bitcoin ETFs in Jan. Andrew Jacobson, 21Shares’ vice president and head of legal, called the moment “exciting” and “an important step” toward trading the products.
The SEC’s decision came as a surprise to some, as many market participants still expected the applications to be rejected. However, on Monday SEC officials asked exchanges to quickly correct the filings, leading to a rush to complete weeks of work in just a few days.
After this request Approval anticipated by some analysts and a significant rally. VanEck’s ETF was also listed on the Depository Trust and Clearing Corporation platform earlier this week,
Ethereum ETF Reception
While the reason for the SEC’s apparent change is still unclear, Rob Marrocco, global head of ETP listings at CBO Global Markets, said a spot Ethereum ETF would improve protection for US investors. He said,
The introduction of a spot Bitcoin ETF has already demonstrated significant benefits for the digital assets and ETF space, and we believe this will be a great alternative to a spot Bitcoin ETF. [Ethereum] Similarly, ETFs will provide protection for US investors
Even after exchange applications are approved, issuers still need to get ETF registration statements detailing investor disclosures approved by the SEC before trading can begin. The timeline for this process is uncertain, and the SEC’s Corporate Finance Division could request changes and updates in the coming days and weeks.
Sui Chung, CEO of CF Benchmarks, an index provider for several bitcoin and Ethereum ETFs, said ETH is more complex than BTC, which could result in a longer review process. However, He also mentioned that The established template of a Bitcoin ETF may limit the SEC’s ability to “slow down” the process.
sec-approves-ethereum-etf-on-nasdaq-nyse-cboe
