SEC Approves Ethereum Spot ETFs For Public Trading

The US Securities and Exchange Commission (SEC) has officially given the green light for Ethereum ETFs to trade on national exchanges.

Several 19b-4 applications to list the product were approved Thursday, just days after the Securities and Exchange Commission began quickly engaging with issuers on the issue in an unexpectedly positive turn for the cryptocurrency industry.

Ether ETFs are on the way

The approval follows the January arrival of bitcoin ETFs, which were launched a day after getting the green light from the Securities and Exchange Commission after a years-long legal battle against the agency to push them.

Unlike their Bitcoin counterparts, Ether ETFs will not launch immediately after today's approval. Although the exchanges have approved 19b-4 application forms for many issuers, the products' S-1 registration statements still need to become effective before launch — which experts say could take some time.

“There will be days (at least), and likely weeks at least, and possibly months between approval and launch here.” chirp Bloomberg ETF analyst James Seyphart regarding Ethereum ETFs on Tuesday.

Before this week, Seyphart and colleague Eric Balchunas had set a 25% probability of ETFs being given the green light. They later increased those odds to 75% upon hearing of the SEC's surprise engagement with issuers on the issue.

ETH rose 28% this week on optimism surrounding approval, given the potential demand ETFs could unleash for the second-largest cryptocurrency. Since the launch of Bitcoin ETFs, these funds have already absorbed $13.3 billion in net inflows, breaking the performance records of every ETF in history at the time of launch.

On Thursday a Twitter poll From Bitwise CIO, Matt Hougan showed that many investors who have already bought Bitcoin ETFs will also buy Ether ETFs.

SEC and Democrats change their stance on cryptocurrencies

The rapid change in stance comes after several pro-crypto votes within the US Congress this month, with many Democrats breaking with their party's leadership in supporting pro-crypto legislation.

Last week, the Senate passed a resolution to repeal Staff Accounting Bulletin 121, which will make it economically viable for regulated banks to offer cryptocurrency custody services.

On Wednesday, the House of Representatives passed the Financial Innovation and Technology for the 21st Century (FIT21) Act to create long-needed legal clarity for cryptocurrencies, receiving support from all Republicans along with 71 Democrats.