In a historic development for Ethereum (ETH) and the broader cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has officially approved long-awaited Ethereum ETF applications submitted by top managers of assets in the world.
The 8 Ethereum ETFs approved
SEC approval of Ethereum ETFs detailed in its official report depositwhich indicates that the proposals comply with the provisions of the Exchange Act and relevant regulations governing national securities exchanges.
The Commission has determined that the proposals from BlackRock, Grayscale, Bitwise, VanEck, Ark Invest and 21Shares, Invesco Galaxy, Fidelity and Franklin Templeton meet the requirements of Section 6(b)(5) of the Exchange Act, which requires preventing fraud and manipulation, protecting investors and safeguarding the public interest.
The Commission’s decision to approve the proposals ahead of the 30-day notice period is supported by changes to exchange filings made earlier this week.
This expedited approval signifies the Commission’s acceptance of the representations and descriptions provided by the exchanges in their amended filings.
Potential change in crypto regulation?
Based on a correlation analysis conducted by the Commission, the regulator concluded that the proposals satisfied the requirements of the Exchange Act, in particular Section 6(b)(5) and Section 11A(a). )(1)(C)(iii).
Notably, the SEC’s decision to approve Ethereum ETFs not only increases exposure and investment opportunities for institutional and retail investors in Ethereum, but may also influence the regulator’s position on the classification of Ethereum as a as raw material. This classification was a crucial factor in the approval of Bitcoin ETFs earlier this year.
It is worth noting that SEC Chairman Gary Gensler previously stated that besides Bitcoin, other cryptocurrencies are considered commodities under the Howey test. However, experts say this outdated framework needs to be revised for effective crypto regulation.
Following the SEC’s approval of the five Ethereum ETFs, ETH saw a 1.7% rise in the last 24 hours, with its current trading price at $3,876.
Featured image from Shutterstock, chart from TradingView.com
