{"id":8718,"date":"2024-05-24T04:43:26","date_gmt":"2024-05-24T04:43:26","guid":{"rendered":"https:\/\/www.cryptometer.io\/news\/?p=8718"},"modified":"2024-05-24T04:43:30","modified_gmt":"2024-05-24T04:43:30","slug":"sec-approves-spot-ether-etf-marking-a-major-milestone-for-crypto-industry","status":"publish","type":"post","link":"https:\/\/www.cryptometer.io\/news\/sec-approves-spot-ether-etf-marking-a-major-milestone-for-crypto-industry\/","title":{"rendered":"SEC Approves Spot Ether ETF, Marking a Major Milestone for Crypto Industry"},"content":{"rendered":"\n<p>The Securities and Exchange Commission (SEC) has cleared the way for the first U.S. exchange-traded funds (ETFs) that invest directly in Ether, marking a significant milestone for the cryptocurrency industry. The SEC approved proposals from Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list products tied to Ether, the second-largest digital asset. This development comes after a period of skepticism about such approval.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Approval for Ether ETFs<\/h2>\n\n\n\n<p>Thursday&#8217;s approval removes a major barrier for U.S. spot-Ether ETF trading. Issuers now require a separate sign-off from the SEC, though no deadline has been set for this decision. In anticipation of this approval, Ether prices surged 1.5% to $3,810 on Friday morning in Singapore, following a 24% increase earlier in the week.<\/p>\n\n\n\n<p>Rich Rosenblum, president of liquidity provider GSR Markets Ltd., described this approval as a landmark event for the crypto industry. Reflecting on the abrupt shift toward approval, Rosenblum stated, &#8220;In the 12 years I\u2019ve been trading this space, this is the most incredible thematic whipsaw I can remember.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Race for First-Mover Advantage<\/h2>\n\n\n\n<p>Prominent firms such as VanEck, ARK Investment Management, BlackRock Inc., and Fidelity Investments are competing to launch the first spot-Ether ETF. Their interest has been driven by the $58 billion accumulated by <a href=\"https:\/\/www.cryptometer.io\/news\/us-sec-approves-bitcoin-etfs-opening-new-investment-avenues\/\">Bitcoin ETFs<\/a> since the SEC approved those products at the start of 2024.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-1024x576.webp\" alt=\"Eth-ETF\" class=\"wp-image-6208\" srcset=\"https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-1024x576.webp 1024w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-300x169.webp 300w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-768x432.webp 768w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-1536x864.webp 1536w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-150x84.webp 150w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-696x392.webp 696w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF-1068x601.webp 1068w, https:\/\/www.cryptometer.io\/news\/wp-content\/uploads\/2024\/04\/Eth-ETF.webp 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p>The SEC\u2019s approval mirrors the one it issued in January for Bitcoin ETFs, highlighting the correlations between the Ether spot market and futures contracts hosted by CME Group Inc. in Chicago. This correlation is crucial for regulators, as CME&#8217;s surveillance systems can identify trading anomalies early.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.cryptometer.io\/news\/vanguard-new-ceo-salim-ramji-plans-no-spot-bitcoin-etf\/\">Vanguard New CEO Salim Ramji Plans No Spot Bitcoin ETF<\/a><\/p>\n\n\n\n<p>A study by Coinbase Global Inc. demonstrated that the correlation between spot and futures markets for Ether was about 85% over one-minute intervals from March 2021 to January 2024. The SEC confirmed these findings, noting that prices generally move in close alignment between the spot and CME Ether futures markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Regulatory Green Light for Spot Ether ETFs<\/h2>\n\n\n\n<p>In a historic move, the SEC has approved the 19b-4 filings from major firms including VanEck, <a href=\"https:\/\/www.cryptometer.io\/news\/blackrocks-bitcoin-etf-sees-first-inflow-halt-in-71-days\/\">BlackRock<\/a>, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval allows spot Ether ETFs to be listed and traded on their respective exchanges, despite ongoing investigations into whether to classify Ether as a security.<\/p>\n\n\n\n<p>While the 19b-4 filings have been approved, ETF issuers still need the SEC to approve their S-1 registration statements before the spot Ether ETFs can begin trading. Analysts suggest this final approval could take anywhere from days to months. Notably, the SEC instructed applicants to expedite their 19b-4 filings on May 20, with the removal of staking being the most significant amendment across several filings.<\/p>\n\n\n\n<p>The SEC did not approve Hashdex\u2019s spot Ether ETF application, which had a final deadline set for May 30. It remains uncertain whether the SEC will eventually approve this ETF.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Legislative and Market Impact<\/h2>\n\n\n\n<p>The SEC\u2019s approval follows a vote by the U.S. House of Representatives in favor of legislation aimed at providing regulatory clarity to the cryptocurrency industry. The <a href=\"https:\/\/www.cryptometer.io\/news\/u-s-house-set-to-vote-on-crypto-regulation-bill-fit21\/\">Financial Innovation and Technology<\/a> for the 21st Century Act, if passed by the Senate and signed into law, will delineate the roles of the SEC and the Commodity Futures Trading Commission.<\/p>\n\n\n\n<p>This approval for spot Ether ETFs comes just four and a half months after the SEC approved several spot Bitcoin ETF applications on January 10. Following the SEC announcement, the price of Ether briefly rose to over $3,900 before settling at $3,800.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission (SEC) has cleared the way for the first U.S. exchange-traded funds (ETFs) that invest directly in Ether, marking a significant milestone for the cryptocurrency industry. The SEC approved proposals from Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list products tied to Ether, the second-largest digital [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":2446,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[258,43],"tags":[],"class_list":{"0":"post-8718","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ethereum","8":"category-general-news"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SEC Approves Spot Ether ETF, Marking a Major Milestone for Crypto Industry<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission (SEC) has cleared the way for the first U.S. exchange-traded funds (ETFs) 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