Breaking News: SEC Approves Eight Ethereum ETFs in Historic Decision
In a groundbreaking move that demonstrates the increasing acceptance of cryptocurrencies in traditional finance, the U.S. Securities and Exchange Commission (SEC) has granted approval for eight spot Ethereum ETF applications. This decision comes just four months after the SEC gave the green light to the first spot Bitcoin ETFs, signaling a rapid shift in the regulatory landscape.
The approval of these Ethereum ETFs follows a last-minute scramble by financial giants such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton, who submitted 19b-4 forms seeking approval. While this initial hurdle has been cleared, ETF issuers now face the challenge of ensuring their S-1 registration statements become effective before trading can begin.
The SEC recently engaged in discussions with issuers regarding these S-1 forms, but the timeline for their effectiveness remains uncertain. Analysts offer varying speculations, with some suggesting a turnaround within weeks and others pointing to historical precedents that have taken over three months.
The SEC’s decision has surprised many market observers, as previous interactions with ETF issuers did not indicate impending approvals. This has led to speculation about the catalyst for this sudden shift. Some sources suggest that bipartisan pressure from House lawmakers, urging the SEC to align its treatment of Ethereum ETFs with its prior acceptance of spot Bitcoin ETFs, may have played a role.
The unexpected move has already had significant effects on the market. The Grayscale Ethereum Trust, for instance, has seen its discount shrink from 24% to 6% as it moves closer to converting into an ETF. This conversion will allow holders to exchange shares for the equivalent cash value of the underlying Ether.
While Bitcoin ETFs have experienced massive inflows since their approval, accumulating an additional 207,000 Bitcoin ($14 billion) on top of the 621,000 Bitcoin ($42 billion) already held by the Grayscale Bitcoin Trust pre-conversion, it remains uncertain whether Ethereum ETFs will garner the same level of investor interest.
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