SEC Approves All 8 Ethereum ETFs Applications Submitted by World's Largest Asset Managers

In a landmark development for Ethereum (ETH) and the broader cryptocurrency market, the US Securities and Exchange Commission (SEC) has officially

The United States Securities and Exchange Commission (SEC) has approved applications from some of the world’s largest asset managers to launch Ethereum (ETH)-linked exchange-traded funds (ETFs), a landmark move that will provide greater exposure and investment options for both institutional and retail investors in the world’s second-largest cryptocurrency.

According to the official filing by the SEC on Friday, the Ethereum ETFs applications that have been approved are those submitted by BlackRock, Grayscale, Bitwise, VanEck, Ark Invest and 21Shares, Invesco Galaxy, Fidelity, and Franklin Templeton.

The approval of these applications comes after the Commission conducted a thorough analysis to evaluate whether the proposals align with the provisions of the Exchange Act and other relevant regulations governing national securities exchanges.

As per the filing, the Commission has determined that the proposals satisfy the requirements of Section 6(b)(5) of the Exchange Act, which mandates the prevention of fraud and manipulation, the protection of investors, and the safeguarding of the public interest.

Moreover, the SEC has also noted that the applications were filed in accordance with the rules of the exchanges, and the Commission’s approval is effective upon the issuance of this order, despite being issued prior to the 30-day notice period.

This accelerated approval is being granted in light of the amendments made to the filings by the exchanges earlier this week, which include representations and descriptions that the Commission has accepted.

The approval of the Ethereum ETFs applications is a significant development in the cryptocurrency market, especially considering the SEC’s previous approval of Bitcoin (BTC) ETFs earlier this year.

However, it is crucial to note that the classification of Bitcoin as a commodity played a key role in enabling its ETFs to be approved by the SEC.

In contrast, other cryptocurrencies, including Ethereum, are deemed to be securities by the regulator based on the Howey test, which raises questions about the approval process for their ETFs.

SEC Chair Gary Gensler has previously stated that, apart from Bitcoin, other cryptocurrencies are considered commodities, yet experts argue that this outdated framework needs revision for effective crypto regulation.

Meanwhile, following the SEC’s nod on all five Ethereum ETFs, ETH has experienced a surge of 1.7% in the past 24 hours, and it is currently trading at $3,876, according to data from TradingView.