The US Securities and Exchange Commission (SEC) approved applications from major exchanges, including Nasdaq, CBOE and NYSE, to list exchange-traded funds tied to the price of ether today (Thursday). This approval will likely open the door for these products to begin trading later this year.
Exporters must obtain regulatory approval
Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, have applied to launch ether-linked ETFs following the SEC's approval of spot Bitcoin ETFs in January. Despite the positive feedback, these applicants must obtain approval of the ETF's registration statements detailing investor disclosures before the funds can begin trading.
“After careful review, the Commission finds that the proposals are consistent with the Exchange Act and the rules and regulations thereunder that apply to a national securities exchange,” the SEC notice said. “In particular, the Commission finds that the proposals are consistent with Section 6(b)(5) ) of the Exchange Act, which requires, among other things, that the rules of exchanges be designed to prevent fraudulent and manipulative acts and practices and, in general, to protect investors and the public interest.”
US Securities and Exchange Commission approves exchange applications to list Ethereum ETFs https://t.co/zvJ6e0L99U pic.twitter.com/okQKGNpLxx
– Reuters (@Reuters) May 23, 2024
Reuters reported that market participants were prepared for a negative outcome, especially given the SEC's lack of involvement in the applications. However, in an unexpected turn of events, SEC officials asked exchanges to make quick adjustments to filings on Monday, sparking a rush to meet the new requirements in short order.
Positive market sentiment boosts ether
However, the SEC has not set a deadline for a decision on the registration data, leaving industry participants uncertain about when trading could begin. Optimism over the SEC's approval of the Ether ETF pushed the price of the second-largest cryptocurrency by 25% on the weekly chart. Notably, the asset management company plans to avoid signing on stocks and derivatives to address regulatory concerns.
In the run-up to the decision deadline, SEC Chairman Gary Gensler, known for his skepticism toward cryptocurrencies, declined to comment when reporters asked about ether ETFs. A spokesperson for the commission also stated that the agency would not provide further comment on the matter. Earlier, a section of the US Congress urged Gensler to approve Ethereum ETFs.
This article was written by Jared Kirroy at www.financemagnates.com.