-
Ether
ETFs
took
a
major
step
toward
becoming
available
in
the
U.S.
as
the
SEC
approved
key
regulatory
filings. -
Just
days
ago,
prospects
for
the
ETFs
looked
bleak.
Spot
ether
(ETH)
exchange-traded
funds
took
a
giant
leap
toward
reality
on
Thursday
after
the
U.S.
Securities
and
Exchange
Commission
approved
key
regulatory
filings
tied
to
them,
a
milestone
for
the
second-largest
cryptocurrency.
They
are
not
yet
cleared
to
trade,
though.
The
SEC
gave
its
blessing
to
so-called
19b-4
forms
tied
to
the
ETFs,
but
the
regulator
must
approve
their
S-1
filings
before
investors
can
buy
them.
The
approval
follows
a
stunning
turnaround
by
the
markets
regulator.
After
clearing
spot
bitcoin
ETFs
earlier
this
year,
the
SEC
didn’t
seem
to
engage
much
with
issuers
on
ether
ETFs.
That
changed
in
recent
days.
“A
week
ago,
I
would’ve
said
you
were
a
little
crazy
to
think
that
these
ETFs
were
going
to
get
SEC
approval,”
James
Seyffart,
ETF
analyst
at
Bloomberg
Intelligence,
said
in
an
interview
ahead
of
the
decision.
In
a
statement,
a
Grayscale
spokesperson
confirmed
the
regulator
had
approved
its
19b-4.
“At
Grayscale,
we
appreciate
the
opportunity
to
engage
constructively
with
regulators
as
they
review
spot
Ethereum
ETFs,
and
we
remain
optimistic
about
the
potential
of
bringing
Ethereum
further
into
the
US
regulatory
perimeter
in
the
ETF
wrapper,”
they
said.
Would-be
spot
ether
ETF
issuers
include
BlackRock,
Fidelity,
Grayscale,
VanEck,
Franklin
Templeton,
Ark/21Shares
and
Invesco/Galaxy.
Although
the
approval
of
the
19b-4
filings
suggests
that
regulators
are
willing
to
allow
issuers
to
bring
a
spot
ether
ETF
on
the
market,
it
doesn’t
guarantee
that
they
will
ultimately
approve
the
final
S-1
forms
filed
by
all
issuers.
“There
is
likely
to
be
a
gap
before
we
see
S-1
approvals
and
these
ETFs
begin
trading.
My
guess
is
that
this
will
take
at
least
a
week,
but
likely
more.
If
history
is
any
guide
it
could
be
much
longer
and
be
measured
in
months.
But
I
personally
think
the
gap
will
be
measured
in
weeks.
Everyone
is
just
guessing
right
now
though.”
Seyffart
said.
Regulators
sent
a
shock
wave
through
the
industry
on
Monday
when
reports
came
out
that
issuers
were
asked
to
update
their
19b-4
filings
ahead
of
the
SEC’s
deadline
to
approve
or
deny
one
of
the
issuers,
VanEck’s
filing.
An
SEC
spokesperson
said
the
agency
would
not
comment
beyond
what’s
in
the
order
published
Thursday.
In
a
statement,
21Shares
Head
of
Legal
Andrew
Jacobson
said
the
approval
was
“a
significant
step
in
the
right
direction.”
Cboe
Global
Head
of
ETP
Listings
Rob
Marrocco
said
the
exchange,
which
plans
to
list
five
different
spot
ether
ETF
products,
was
“excited
to
expand
our
offerings”
to
the
ETFs.
The
19b-4
approval
is
a
step
toward
those
listings.
“The
introduction
of
spot
bitcoin
ETFs
in
January
has
already
demonstrated
significant
benefits
for
the
digital
assets
and
ETF
space,
and
we
believe
that
spot
Ether
ETFs
will
similarly
provide
safeguards
for
U.S.
investors,
allowing
them
to
gain
Ether
exposure
in
a
transparent,
well-regulated
and
easily
accessible
structure,”
he
said.
The
exchange
will
continue
working
with
the
SEC
to
bring
the
ETFs
to
market,
he
said.
VanEck
expects
to
be
the
first
issuer
to
launch
its
spot
ether
ETF,
said
the
company’s
head
of
digital
assets
research,
Matthew
Sigal.
UPDATE
(May
23,
2024,
21:30
UTC):
Adds
additional
information,
including
SEC
statement.
UPDATE
(May
23,
2024,
21:50
UTC):
Adds
statements
from
issuers,
Cboe.
