SEC approves eight Ethereum ETFs in groundbreaking decision
2 min readThe US Securities and Exchange Commission (SEC) approved eight applications for Ethereum ETFs through a collective order on Thursday, signaling the growing acceptance of cryptocurrencies in traditional finance.
The SEC’s decision came just four months after the agency greenlit the first Bitcoin ETFs and marks a rapid shift in the regulatory environment.
Ethereum ETF approvals after last-minute scramble
The SEC has approved the 19b-4 forms filed by financial giants such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton. Although the first hurdle has been cleared, ETF issuers now face another: They must ensure that their S-1 registration statements become effective before trading can begin.
Although the SEC recently began discussions with issuers about these S-1 forms, the timeline is currently uncertain, with some analysts speculating a transition within weeks, while others point to historical precedents taking more than three months.
The SEC’s decision comes as a surprise to many market observers. Previous interactions between the regulator and ETF issuers have given little indication of impending approvals, leading to speculation about the catalyst for this sudden shift. Some sources point to recent bipartisan pressure from lawmakers in the House of Representatives, who urged the SEC to align its treatment of Ethereum ETFs with its previous acceptance of Bitcoin spot ETFs.
The unexpected move has already sparked notable market reactions. The Grayscale Ethereum Trust, for example, has seen its discount drop from 24% to 6% as it nears its conversion to an ETF. The conversion will allow holders to exchange shares for the equivalent cash value of the underlying Ether.
While Bitcoin ETFs have seen huge inflows since their approval, accumulating an additional 207,000 Bitcoin ($14 billion) on top of the 621,000 Bitcoin ($42 billion) that the Grayscale Bitcoin Trust already owned before the conversion, it is unclear whether Ethereum ETFs will attract the same level of investor interest.
