The Securities and Exchange Commission (SEC) has approved spot Ethereum ETFs. These approvals represent a pivotal step towards the listing and trading of Ethereum-based exchange-traded products on prominent U.S. exchanges.
James Seyffart of Bloomberg Intelligence announced the news on Twitter, stating, "BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening."
BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening.
h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
— James Seyffart (@JSeyff) May 23, 2024
BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton are the approved issuers. However, according to a report by Galaxy Digital, spot Ethereum ETFs are anticipated to commence trading in July or August 2024.
The timeline for these ETFs is notably longer compared to their Bitcoin counterparts, which experienced a quicker transition from approval to trading. The extended period is attributed to the complex nature of Ethereum's decentralized applications, which introduce additional regulatory considerations and potential disclosure requirements.
As of the announcement, the price of Ethereum has experienced a modest increase, rising from $3,700 to $3,800. The approval of spot Ethereum ETFs is expected to influence the market further as regulatory processes continue to unfold and the funds move closer to being listed and traded.