SEC Approves Spot Ethereum ETFs from Major Players, Marking a New Era in Crypto Investing

The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum ETFs from major players like BlackRock, Fidelity, and Grayscale, marking a significant shift in crypto investment options.

Overview of the Approval

On May 23, 2024, the SEC gave the green light to 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise through an omnibus order. This approval follows the recent introduction of spot Bitcoin ETFs in January, highlighting growing acceptance of digital asset investment products in the U.S.

Details of the Process

The approved ETFs will be listed on three major exchanges: CBOE, NYSE ARCA, and NASDAQ, broadening Ethereum’s accessibility to investors. Despite this progress, trading can only commence once the issuers receive approval for their S-1 registration statements. While this process can take a few weeks, it has historically taken up to three months.

Political Influence and Market Reactions

The SEC’s decision came unexpectedly, especially given their recent lack of engagement with issuers. Political pressure from House lawmakers, including Majority Whip Tom Emmer and NJ Democrat Josh Gottheimer, may have influenced the rapid approval. They urged the SEC to approve the ETFs to align with the agency’s recent approval of spot Bitcoin ETFs.

Insiders suggest that some parts of the SEC were surprised by the swift approval. Market analysts like Bloomberg’s Eric Balchunas estimate that Ethereum ETFs could attract 10-15% of the investment expected for Bitcoin ETFs, potentially garnering $5-$8 billion in the first few years.

Next Steps and Market Outlook

Issuers are now focused on obtaining S-1 registration approval, which is essential for trading to begin. Conversations between the SEC and issuers have started, but the exact timeline for approval remains uncertain.

QCP Capital has provided a bullish forecast for Ethereum, expecting its value to exceed $6,000 following the ETF approvals, driven by anticipated institutional investment and greater market accessibility.


Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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