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The U.S. Securities and Exchange Commission (SEC) approved applications from Nasdaq, CBOE, and NYSE on Thursday to list spot exchange-traded funds (ETFs) tied to the price of Ethereum (ETH).
This decision could potentially allow these products to start trading later this year, marking a significant win for the cryptocurrency industry.
Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, are hoping to launch ether ETFs following the SEC’s approval of Bitcoin ETFs in January. Andrew Jacobson, vice president and head of legal at 21Shares, described the moment as “exciting” and “a significant step” towards getting the products trading.
The SEC’s decision came as a surprise to some, as many market participants were still expecting the applications to be rejected. However, on Monday, SEC officials asked the exchanges to quickly fine-tune the filings, leading to a scramble to complete weeks of work in just days.
This request was followed by the anticipation of approval by some analysts and a significant rally. VanEck’s ETF was also listed on the Depository Trust and Clearing Corporation platform earlier this week.
Ethereum ETF reception
While the reason for the SEC’s apparent change of heart remains unclear, Rob Marrocco, global head of ETP listings at Cboe Global Markets, stated that spot Ethereum ETFs would improve the safety of US investors. He said:
The introduction of spot Bitcoin ETFs has already demonstrated significant benefits for the digital assets and ETF space, and we believe that spot [Ethereum] ETFs will similarly provide safeguards for U.S. investors
Despite the exchange applications receiving approval, issuers still need the SEC to approve ETF registration statements detailing investor disclosures before trading can begin. The timeline for this process is uncertain, and the SEC’s corporate finance division is likely to request changes and updates in the coming days and weeks.
Sui Chung, CEO of CF Benchmarks, the index-provider for several Bitcoin and Ethereum ETFs, noted that ETH is more complex than BTC, which could result in a longer review process. However, he also mentioned that the established template from Bitcoin ETFs might limit the SEC’s ability to “slow roll” the process.
