Bitrabo Editorial
The US Securities and Exchange Commission has given the green light to all 5 Ethereum Exchange-Traded Funds (ETFs), marking a significant milestone for Ethereum and the wider cryptocurrency market.
Confirmation of Ethereum ETF Approval
The approval of the Ethereum ETFs by the SEC is outlined in an official document stating that the applications comply with the regulations under the Exchange Act for national securities exchanges.
Key asset managers including VanEck, Ark Invest, 21 Shares, Invesco Galaxy, Fidelity, and Franklin Templeton have had their proposals accepted by the Commission, meeting the requirements of Section 6(b)(5) of the Exchange Act which focuses on preventing fraud and manipulation, ensuring investor protection, and safeguarding public interests.
The SEC’s decision to greenlight the proposals earlier than the 30-day notice period was enabled by amendments made to the filings by the exchanges earlier in the week, signaling a prompt acceptance of the information provided by the exchanges.
The accelerated approval process indicates the Commission’s confidence in the representations and disclosures presented in the amended filings by the exchanges.
Potential Impact on Crypto Regulation
According to the Commission’s analysis, the Ethereum ETF proposals met the criteria set forth in the Exchange Act, especially under Section 6(b)(5) and Section 11A(a)(1)(C)(iii).
This move by the SEC to approve the Ethereum ETFs not only broadens investment avenues for both institutional and retail investors in Ethereum but also holds the potential to shape the regulator’s perspective on categorizing Ethereum as a commodity, a pivotal aspect considered in approving Bitcoin ETFs earlier this year.
While SEC Chair Gary Gensler previously indicated that, apart from Bitcoin, other cryptocurrencies are deemed commodities under the Howey test, experts argue that a revamp of this outdated framework is necessary for effective crypto regulation.
Following the approval of all five Ethereum ETFs by the SEC, Ethereum has seen a 1.7% surge in the past 24 hours, with the current trading price standing at $3,876.
Featured image from Shutterstock, chart from TradingView.com