The US Securities and Exchange Commission (SEC) has officially approved the spot Ethereum ETF, granting approval for 8 applications for 19B-4 forms. The next step is for the SEC to approve the S-1 forms, allowing these ETFs to be traded on stock markets. While this approval may not happen immediately, investors are pleased that the most crucial step has been completed.
Previously, the SEC expressed concerns about whether Ether should be classified as a security. In recent Wells Notices sent to crypto companies, the SEC officially stated these doubts. However, it has now reversed its stance and given initial approvals to all 8 applications, likely for political reasons. The approvals for the S-1 forms are expected to come in a few weeks. Stay up to date with the latest technology news on NEWSLINKER.
Here are some important points to summarize:
– After careful review, the Commission found that the Proposals align with the Exchange Act and rules for a national securities exchange.
– The approval designates the ETF as Commodity-Based Trust Shares, officially categorizing it as a commodity.
– The Commission accepted a 99% correlation between CME and spot ETH pricing.
– Each Proposal includes consistent elements with other ETPs approved by the Commission, such as availability of pricing information, transparency of portfolio assets, and oversight procedures.
– One commenter argued that the Commission should approve the Proposals because CME ether futures ETFs, which are registered under the 1940 Investment Company Act, already trade on national securities exchanges and have a higher potential for manipulation of underlying assets. Another commenter stated that there is no difference between the approval of spot bitcoin ETPs and spot ether ETPs at this stage.
The SEC provides an explanation for granting approval, which is signed by J. Matthew DeLesDernier, marking a significant historical milestone.
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Disclaimer: This article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
