SEC approves Ethereum ETF for fund management titans including BlackRock, a major breakthrough in the cryptocurrency space

adminMay 24, 2024

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The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum exchange-traded funds (ETFs) in another landmark regulatory innovation for the cryptocurrency industry.

The securities watchdog did so late today after a last-minute rush to approve so-called Form 19b-4s for ETF applications filed by Ark, Bitwise, BlackRock, Fidelity, Franklin Templeton, Grayscale, VanEck and Invesco Galaxy. However, the funds cannot be traded until the SEC approves the applicant’s S-1 filing.

“If they work extremely hard, it could be done in a matter of weeks, but historically there have been many instances where this process has taken three months or more,” Bloomberg Intelligence ETF analyst James Seyffart said in a post to X. “Obviously this is not the case at all. This is everything that has happened historically, IMO.”

Nonetheless, the SEC’s order approved the ETH ETF “at a rapid pace.”

eight!! Approved! There. Position just approved by SEC #Ethereum ETF. It was a really great event. It’s actually happening.
h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
— James Seyff (@JSeyff) May 23, 2024

Ethereum’s reaction was muted, with the price rising 1.8% over the past 24 hours to trade at $3,836 as of 6:02 PM ET, indicating that the market has already priced approval.

The decision comes more than four months after a number of Bitcoin spot ETFs received landmark approval in January, and despite the fact that until earlier this week most analysts believed such a decision was highly unlikely to happen. .

Was approval of the ETH ETF a political imperative?

There is also speculation that political dynamics may have triggered a reversal as the presidential election approaches.

After Republican candidate Donald Trump accepted cryptocurrency campaign donations, analysts speculated that Democrats may also have to change their anti-crypto stance. Galaxy Digital CEO Mike Novogratz told CNBC’s Squawk Box in an interview earlier this week.

“I think someone in the Biden White House called and said, ‘Hey guys, we can’t be anti-cryptocurrency anymore,’” he said.

Last Scramble

Today’s announcement comes just hours after the SEC began conversations with the issuer of the Ethereum ETF for final adjustments to its Form S-1. This led the market to speculate that the deal had been approved. Ahead of the announcement, SEC Chairman Gary Gensler told investors to “stay tuned.”

Late in the afternoon, the SEC requested a six-hour extension to the deadline as it rushed to complete the approval process.

JUST IN: SEC begins talks with Ethereum ETF issuer for final reconciliation of Form S-1.
Look like that $ETH ETFs are a done deal. 🚀
— Lark Davis (@TheCryptoLark) May 23, 2024

Ethereum ETFS Fast Tracked by SEC

The SEC began expediting the approval process earlier this week, asking applicants to update their filings. That led Bloomberg Intelligence analysts Eric Balchunas and James Seyffart to raise the odds of approval to 75% from their previous “slim odds.”

Investors bought more than 100,000 ETH in the spot market on May 22 in anticipation of imminent approval, the highest one-day total since last September, according to on-chain analytics firm CryptoQuant.

Early ETH holders purchased over 100,000 ETH yesterday.
Julio Moreno, head of research at CryptoQuant, reported to They purchased over 100,000 ETH.
— Coinness Global (@CoinnessGL) May 21, 2024

A bipartisan group of lawmakers, including Majority Leader Tom Emmer and New Jersey Democrat Josh Gottheimer, sent a letter to the SEC Chairman yesterday, May 22, stating that the SEC “will approve physical Ether ETFs and ‘other’ digital assets.” “He urged.

The letter states that the investment product will provide investors with access to cryptocurrencies in a regulated, transparent and secure format.

We urge the SEC Chairman @GaryGensler Approve pending Ether ETP applications. @GOPMajorityWhip @RepJoshG @USRepMikeFlood @WileyNickel
Check out the letter we sent you @GaryGensler Under: pic.twitter.com/uv8Sp8lqUx
— French Hill (@RepFrenchHill) May 23, 2024

Singapore-based QCP Capital previously said the approval of the ETH ETF could lead to a 60% rise in the price of Ethereum.

Ethereum prices have surged nearly 45% over the past two weeks, mirroring the surge in Bitcoin prices ahead of the approval of a spot Bitcoin ETF in January.

Ethereum