June 5, 2024
Latest Cryptocurrency News

SEC Approves Spot Ether ETFs with New Approval Process

Approval Process Differences

On May 23, the United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs). This approval process diverged slightly from that of the spot Bitcoin ETFs approved in January. While the spot Bitcoin ETFs required a vote by a five-member committee, including SEC chief Gary Gensler, the spot Ether ETFs were approved by the SEC’s Trading and Markets Division.

SEC decisions and reactions

The SEC approved the 19b-4 filings from major players such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, the SEC chose not to comment beyond the official decision. The filing stated: “For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”

Bloomberg ETF analyst James Seyffart noted that this variation in the approval process is not unusual. He explained that many approvals follow this procedure, and an official vote for every decision would be impractical. However, not everyone agrees with Seyffart’s perspective. Some members of the crypto community speculate that the use of delegated authority might be a strategic move to conceal political biases. One user on X pointed out that a commissioner could still challenge the decision within 10 days, suggesting political pressure and upcoming elections as potential influences.

Market Implications

The primary distinction between the approval processes for the two crypto ETFs extends to their market debuts. Unlike the spot Bitcoin ETFs, which started trading the day after approval due to S-1 form clearance, the spot Ether ETFs could face delays. The ETF filers for spot Ether ETFs have not yet received the S-1 SEC registration, which could postpone their market debut by weeks or even months.

Crypto Evolution

The approval of spot Ether ETFs marks a significant step in the evolution of cryptocurrency investment options, albeit with a different approval process than spot Bitcoin ETFs. While the role of Gary Gensler and political factors remain points of discussion, the eventual launch of these ETFs will be closely watched by investors and the crypto community. The timeline for their debut remains uncertain, pending further SEC registrations.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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