- Prospective issuers of a spot ethereum exchange-traded fund (ETF) were told by the Securities and Exchanges Commission (SEC) on Monday that the funds can begin trading next Tuesday.
- Issuers have been asked to submit their final S-1 documents by Wednesday.
- The article discloses that CoinDesk is an award-winning media outlet covering the cryptocurrency industry, acquired by the Bullish group in November 2023, and operates as an independent subsidiary with an editorial committee to protect journalistic independence.
The Securities and Exchange Commission (SEC) has reportedly given the green light for a spot Ethereum exchange-traded fund (ETF) to begin trading next week. This long-awaited move could have major implications for the crypto industry.
Details on the SEC Approval
According to sources familiar with the matter, the SEC informed prospective ETF issuers on Monday that the proposed funds can start trading on Tuesday, July 20. The issuers have reportedly been asked to submit their final S-1 registration documents by Wednesday.
The SEC has yet to officially confirm the approval. However, if accurate, this would be the first spot crypto ETF approved in the US. Up until now, the SEC has rejected or delayed decisions on spot bitcoin and ether ETF applications due to concerns around volatility, liquidity and potential for manipulation.
Monday’s reported move comes after years of debate and applications for spot crypto ETFs. It signals growing acceptance of cryptocurrencies as an investable asset class by US regulators.
Implications for the Crypto Industry
Approval of a spot ether ETF could significantly expand access to ether as an asset. It may draw fresh institutional and retail interest to the second largest cryptocurrency by market cap.
Some analysts predict that a spot ether ETF could trigger billions of dollars of inflows into the ether market. It could also pave the way for a spot bitcoin ETF, which many view as the holy grail for crypto investors.
Overall, an SEC-approved spot crypto ETF would represent major progress for the legitimacy and maturity of cryptocurrencies. However, the SEC has yet to confirm or deny the reported approval.
