In a move that has the crypto community buzzing, the U.S. Securities and Exchange Commission (SEC) has asked major exchanges to refine their applications for Ethereum spot ETFs.
According to Reuters reportAccording to sources close to the process, this request is interpreted as a positive signal indicating that the regulator could be ready to give the green light to these long-awaited products.
Ethereum ETF Approvals Get Closer
The exchanges in question – Nasdaq, CBOE and NYSE – worked on submissions to list Ethereum ETFs provided by asset managers like VanEck and ARK Investments/21Shares. Typically, these SEC regulatory comments precede approval rather than rejection.
“The SEC’s engagement in trading on Ether ETF deposits is a surprising and encouraging development for the crypto industry,” said a source who declined to be named.
This change in the The SEC’s position marks a potential sea change, as the regulator had previously appeared skeptical about approving spot cryptocurrency ETFs. Its rejection of numerous Bitcoin ETF applications over the years, citing market manipulation concerns, dampened the industry’s hopes.
However, the SEC was forced to give the green light to Bitcoin futures ETFs last October after a legal challenge from Grayscale Investments and to spot Bitcoin ETFs in January. These products have since attracted considerable interest from a variety of investors, including hedge funds, wealth advisors and retail traders.
Watershed moment for the crypto industry
The potential approval of Ethereum ETFs would be another major milestone for the crypto sector. ETH, the native cryptocurrency of the Ethereum blockchain, has become the second largest digital asset by market capitalization, behind Bitcoin.
“An SEC-approved Ethereum ETF would be a huge 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 regarding Ethereum ETF deposits is expected at the end of the week. Although exchange applications are only the first step in the approval process and the SEC must still approve the ETF’s registration statements, this latest development has fueled optimism within the crypto community.
“The SEC’s willingness to constructively engage in trading on these deposits is a clear indication that the regulator may be interested in the idea of ether ETFs,” the industry source said. “This could be a major turning point for the crypto industry.”
At the time of writing, ETH was trading at $3,780, having surged 22% in the last 24 hours. This push was driven by growing market expectations of the impending approval of new ETFs by the United States Securities and Exchange Commission.
Featured image from Shutterstock, chart from TradingView.com
