First Bitcoin, now Ether: SEC opens door to Ethereum ETFs
While the SEC’s Thursday approval marks a significant milestone, the timing of the second round of approvals and the subsequent launch of ether ETFs remains unclear.
In a landmark decision, the US Securities and Exchange Commission (SEC) has signalled its approval for the potential launch of eight exchange-traded funds (ETFs) linked to ether, the world’s second-largest cryptocurrency. This move follows the SEC’s approval of the first bitcoin ETFs earlier this year, marking a significant shift in the regulatory landscape for digital assets.
The SEC’s approval on Thursday involved crucial rule changes that pave the way for ETFs that directly invest in ether, the native cryptocurrency of the Ethereum blockchain. Applications from prominent financial groups such as BlackRock, Fidelity, Invesco, and Ark Invest received the green light. While this represents a major step forward, a second round of approvals will be necessary before these products can officially launch.
The anticipation surrounding these approvals has fueled a surge in ether’s price, which has climbed more than 20% since Monday and over 60% since the beginning of the year. This reflects the growing confidence among investors regarding the mainstream acceptance of cryptocurrencies.
The SEC’s decision comes after months of silence on the matter. On Monday, the regulator unexpectedly provided feedback on pending applications to issuers and exchanges, triggering a flurry of paperwork revisions and submissions. This swift action was likely prompted by approaching deadlines for responses to ether ETF applications from VanEck and Ark Invest.
While the SEC’s Thursday approval marks a significant milestone, the timing of the second round of approvals and the subsequent launch of ether ETFs remains unclear.
Commenting on the development, Sergey Nazarov, co-founder of Chainlink stated: “The Ethereum ETF approval is a second large step forward for the crypto industry… The attention and adoption around the Ethereum ETF also proves the long-term thesis we have been building around, that the capital markets will be the next large source of adoption for the cryptocurrency industry, essentially being the key force that is driving it to new heights.”
Nazarov highlighted the potential of the approval to shine a spotlight on Ethereum’s smart contract and decentralised application capabilities, which are attracting growing interest from major financial institutions.
This landmark decision by the SEC could potentially usher in a new era for cryptocurrencies, further solidifying their integration into traditional financial markets.
Bybusinesstoday
