The U.S. Securities and Exchange Commission (SEC) has officially approved Ether spot ETFs to trade on national securities exchanges.
Quick Approval of Applications for Ether Spot ETFs
On Thursday, the SEC approved multiple 19b-4 applications to list Ether spot ETFs. This decision came just days after the SEC began unexpectedly engaging with issuers on the matter, marking a positive turn for the crypto industry.
This approval follows the launch of Bitcoin spot ETFs in January, which happened one day after the SEC’s greenlight, ending a lengthy legal battle. Unlike Bitcoin ETFs, Ether ETFs won’t launch immediately. The exchanges have approved multiple issuers’ 19b-4 applications, but their S-1 registration statements still need to go effective before the products can be launched. Experts believe this process could take some time.
“There will be days (at a minimum), likely at least weeks, and potentially months between approval and launches here,” tweeted Bloomberg ETF analyst James Seyffart on Tuesday.
Market Response and Predictions for Ether Spot ETFs
Before this week, Seyffart and his colleague Eric Balchunas had given a 25% chance of Ether ETFs being approved. They later increased this likelihood to 75% after the SEC’s sudden engagement with issuers.
Optimism about the approval has driven Ether prices up by 28% this week, reflecting potential demand. Since Bitcoin ETFs went live, they have attracted $13.3 billion in net inflows, breaking launch-time performance records for all ETFs in history.
On Thursday, a Twitter poll by Bitwise CIO Matt Hougan revealed that many investors who have bought Bitcoin spot ETFs would also buy Ether ETFs.
Legislative Support for Crypto
The SEC’s decision comes amid a series of pro-crypto policy votes in the U.S. Congress. Recently, many Democrats have supported pro-crypto legislation, breaking from their party’s leadership.
Last week, the Senate passed a resolution to repeal Staff Accounting Bulletin 121, making it more economically viable for regulated banks to offer crypto custody services.
On Wednesday, the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21), aimed at providing legal clarity for crypto. The act received support from all Republicans and 71 Democrats.
