The US Securities and Exchange Commission has officially approved the highly anticipated Ethereum ETF applications submitted by several of the world’s largest asset managers. All eight Ethereum ETFs have received the green light.
According to a memo from the SEC, NYSE Arca has been authorized to list the Grayscale Ethereum Trust and the Bitwise Ethereum ETF. Nasdaq will list the iShares Ethereum Trust, while CBOE BZX will list the VanEck Ethereum Trust, the ARK 21Shares Ethereum ETF, the Invesco Galaxy Ethereum ETF, the Fidelity Ethereum Fund, and the Franklin Ethereum ETF.
The SEC’s decision to approve the Ethereum ETFs significantly enhances exposure and investment opportunities for both institutional and retail investors in Ethereum. This approval also has the potential to influence the regulator’s stance on the classification of Ethereum as a commodity.
Concerns regarding whether Ether is a security and issues surrounding staking were major factors in the SEC’s previous reluctance to approve ether ETFs. Many market participants believe this decision indirectly suggests that ether is not a security. The staking issues were resolved when ETF issuers removed staking from their applications.
Some analysts believe that the White House’s softened stance on cryptocurrency played a role in the SEC’s move toward approval.
Despite the approval, the ETFs cannot immediately begin trading. The SEC still needs to review individual applications from asset managers for each of the eight ETFs that were initially approved. This review process could take several weeks.
In anticipation of the trading start date, ETHUSD remained near $3,900 per coin, after retreating from a three-month high of just under $4,000. Bitcoin saw a decline, with its price dropping from $70,600 on Monday to $68,200 early Tuesday.
This latest regulatory approval marks another significant achievement for the cryptocurrency sector. The newly approved Ether ETFs, issued by major asset managers such as BlackRock, will be listed alongside the Bitcoin ETFs launched earlier this year. Increased volatility is expected in the coming days as crypto enthusiasts position themselves for high-frequency trading opportunities.
