In a move that has the crypto community in high spirits, the US Securities and Exchange Commission (SEC) has asked major exchanges to refine their applications for ethereum spot ETFs.
According to Reuters reportSources familiar with the process say this request is being interpreted as a positive sign that the regulator may be ready to give the green light to these long-awaited products.
ethereum ETF Approvals Inching Closer
The exchanges in question (Nasdaq, CBOE and NYSE) have been working on presentations to list ethereum ETFs provided by asset managers such as VanEck and ARK Investments/21Shares. Typically, such regulatory feedback from the SEC precedes approval rather than rejection.
“The SEC’s engagement with exchanges on ether ETF filings is a surprising and encouraging development for the crypto industry,” said a source who asked not to be identified.
This change in The SEC's position marks a potential sea change, as the regulator had previously been skeptical about approving spot cryptocurrency ETFs. Its rejection of numerous bitcoin ETF applications over the years, citing concerns about market manipulation, dampened the industry's hopes.
However, the SEC was forced to give the green light to bitcoin futures ETFs last October after a court challenge by Grayscale Investments and to bitcoin spot ETFs in January. Those products have since attracted significant interest from a variety of investors, including hedge funds, wealth advisors and retail traders.
Decisive moment for the crypto industry
The possible approval of ethereum ETFs would be another important milestone for the cryptocurrency sector. eth, the native cryptocurrency of the ethereum blockchain, has become the second largest digital asset by market capitalization, second only to bitcoin.
“An SEC-approved ethereum ETF would be a big deal, providing investors with a regulated and convenient way to gain exposure to the second-largest cryptocurrency,” said an industry executive familiar with the matter.
According to the report, the SEC's decision on ethereum ETF filings is expected At the end of the week. While exchange applications are only the first step in the approval process and the SEC still needs to approve ETF registration statements, this latest development has fueled optimism within the crypto community.
“The SEC’s willingness to constructively engage with exchanges on these filings is a clear indication that the regulator may be warming up to the idea of ether ETFs,” the industry source said. “This could be a major turning point for the crypto industry.”
At the time of this report, eth is trading at $3,780, having risen a substantial 22% in the last 24 hours. This increase was driven by growing market expectations regarding the imminent approval of new ETFs by the United States Securities and Exchange Commission.
Featured image from Shutterstock, chart from TradingView.com
