- The SEC has approved Ether ETFs through its Trading and Markets Division, contrasting with the committee-based approval for Bitcoin ETFs.
- Ether ETF approvals included major firms like BlackRock and Fidelity, though trading may be delayed pending additional registrations.
- Observers discuss the nuanced approval process, suggesting potential political undercurrents in the SEC’s approach.
The SEC has marked a significant regulatory milestone by approving the first spot Ether exchange-traded funds (ETFs), an action taken on May 23. This approval notably diverged from the process used earlier in the year for Bitcoin ETFs, which involved a formal vote by the SEC’s five-member committee, including SEC chief Gary Gensler. Instead, the Ether ETFs received approval directly from the SEC’s Trading and Markets Division, bypassing the committee vote.
This year’s Ether ETF approvals were granted to a host of major investment firms, including BlackRock, Fidelity, Grayscale, and several others, according to their 19b-4 filings. The SEC, however, remained tight-lipped beyond their formal statement which mentioned the decision was made “for the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”
The variation in the approval process has sparked curiosity and speculation within the cryptocurrency community. Bloomberg ETF analyst James Seyffart offered some clarity, suggesting that the approach was standard for many SEC approvals to manage workload and efficiency. He noted, “if the SEC required an official vote for every decision or every document — it’d be insane.”
Ether ETF’s Future Still Unpredictable
Despite Seyffart’s reassurances, the change in procedure has raised eyebrows. Some members of the crypto community on X expressed concerns, hinting at possible political motivations behind the decision to use delegated authority. One user speculated that this method could obscure the commissioners’ votes, which might reflect political alignments, particularly in the run-up to upcoming elections.
Additionally, while Bitcoin ETFs began trading the day after their approval, Ether ETFs are facing a delay. They are still awaiting the clearance of their S-1 SEC registrations, which is necessary before they can start trading. This delay could span weeks or months, indicating a significant divergence not just in the approval process but also in the rollout of these cryptocurrency investment products.
