SEC Approves Spot Ether ETFs: Milestone for Crypto Market

The U.S. Securities and Exchange Commission (SEC) has granted approval for several spot Ether exchange-traded funds (ETFs) in the United States, marking a significant development in the cryptocurrency market. This approval follows speculation regarding the SEC's treatment of Ether (ETH) as a security. Notable companies such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21 Shares, Invesco Galaxy, and Bitwise have received approval for rule changes allowing spot Ether ETFs to be listed and traded on exchanges. While the 19b-4 filings have been approved, ETF issuers await SEC approval for their respective S-1 registration statements before the spot Ether ETFs can officially commence trading. The removal of staking is among the notable amendments seen across various filings. Notably, Hashdex's spot Ether ETF application did not receive approval, with uncertainty surrounding the SEC's decision on this matter. The SEC's decision comes amidst broader legislative efforts to provide regulatory clarity to the cryptocurrency industry, including the Financial Innovation and Technology for the 21st Century Act, which awaits approval by the Senate. This approval of spot Ether ETFs comes after the SEC's approval of spot Bitcoin ETF applications in January, marking a significant milestone for the cryptocurrency market. Following the SEC announcement, the price of ETH initially surged to over $3,900 before settling at $3,759 at the time of publication.