Tech
Eight Ethereum Spot ETFs Gain SEC Approval
The United States Securities and Exchange Commission (SEC) has made an important decision by approving eight Ethereum (ETH) exchange-traded funds (ETFs). This approval it has been granted to major financial companies, including Fidelity, BlackRock, Bitwise and Grayscale.
The regulator also approved Franklin Templeton, VanEck, Ark and Invesco Galaxy ETFs, marking a significant milestone for the cryptocurrency industry. The anticipation now turns to whether XRP will be the next digital asset to gain similar approval.
Details of the ETF approval process
Before the newly approved Ethereum ETFs can begin trading, issuers must finalize their S-1 statements. This process could take a few weeks, according to Bloomberg analyst James Seyffart.
Meanwhile, the SEC’s accelerated approval also covers the trust that will hold Ether in whole or in part. This decision was based on proposals that met the criteria established by the Exchange Act in Section 6(b)(5).
The main objective of this section was generally the prevention of fraudulent and manipulative acts and the protection of investors and the public interest. The proposals also comply with Section 11A(a)(1)(C)(iii) of the Exchange Act, which seeks to support the availability of information about securities transactions.
Notably, exchanges listing bitcoin-based ETFs had previously received instructions from the SEC. These instructions provide that they must enter into detailed surveillance sharing agreements with the regulated markets relating to the assets. The agency said this is the only way exchanges can meet their regulatory obligations.
Meanwhile, traders cannot buy and sell ether on the Chicago Mercantile Exchange (CME). However, this fact does not affect the affiliation of approved exchanges with the Intermarket Surveillance Group.
This affiliation allows them to share critical market surveillance information from CME, including ether futures. The SEC believes these deals are good enough to mitigate the risks of manipulation and fraud, even though the CME does not provide for spot ether.
Interestingly, the SEC’s approval of spot ETFs has been widely accepted in the digital asset community. TopGcrypto, a leading figure in the crypto world, attracted attention to the potential benefits of the SEC’s decision. He noted that this could lead to exciting times ahead for Ethereum and the broader market.
Ripple CEO Brad Garlinghouse also expressed optimism, suggesting XRP may soon receive the same approval. He highlighted the importance of the SEC’s decision and the passage of the FIT21 cryptocurrency law, calling these developments significant for the industry.
Furthermore, market analysts were quick to offer optimistic forecasts following the approval of the ETH ETF.
An important example is Miles Deutscher. The same expected that the value of ETH could rise to $6,446 by July. However, this forecast depends on the possibility of final approval of the ETFs.
He compared this potential surge to Bitcoin’s historic price surge following the ETF’s approval, suggesting that Ethereum could see a similar 75.17% increase.
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