SEC Clears Path for Ether Exchange-Traded Funds, Paving Way for Regulatory Change
Summary:
The U.S. Securities and Exchange Commission (SEC) has given regulatory approval for the listing of Ether (ETH) exchange-traded funds on U.S. exchanges, according to a May 23 filing. This decision allows for regulatory changes permitting spot Ether exchange-traded funds to be listed and traded on individual exchanges. The SEC continues to examine S-1 registration statements before Ether ETFs can officially start trading, a process that experts predict could take a variable length of time. This decision followed a day after U.S. House of Representatives passed a bill aimed at clarifying cryptocurrency regulations. This news occurs approximately four and a half months post SEC's approval of Bitcoin ETF applications. Further details are underway.
For the second time this year, the U.S. Securities and Exchange Commission (SEC) has cleared the way for the listing of Ether (ETH) exchange-traded funds on American exchanges. In a filing dated May 23, the SEC sanctioned the 19b-4 submissions by VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval paves the way for changes in regulation that permit spot Ether exchange-traded funds to be listed and traded on their respective exchanges. This crucial decision was made despite rumors of the SEC mulling over the classification of Ether as a security. The 19b-4 applications have received approval, but ETF issuers need the SEC's endorsement on their individual S-1 registration documents for the spot Ether ETFs to officially commence trading. As per industry experts, this process could range from several days to weeks or even months. The SEC reportedly asked candidates to speed up their 19b-4 applications on May 20. An evident change seen across multiple filings is the removal of staking. The SEC's authorization comes a day after members of the U.S. House of Representatives endorsed a bill supposed to provide increased regulatory transparency to the cryptocurrency industry. The bill, titled 'Financial Innovation and Technology for the 21st Century', will delineate the roles of the SEC and the Commodity Futures Trading Commission, pending approval from the Senate and the President's signature. The approval for the Ether ETF comes around four and a half months after the SEC gave the go-ahead to several Bitcoin ETF applications on January 10, marking a notable industry milestone. This news is still unfolding, and more details will be provided as they emerge.
Published At
5/24/2024 12:14:52 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.