Key Approval of Ethereum ETF by U.S. SEC Highlights Regulatory Shift
On Thursday, the pathway for a spot Ethereum (ETH) exchange-traded fund (ETF) became clearer as the U.S. Securities and Exchange Commission (SEC) approved a critical regulatory document, marking a significant milestone for the second-largest cryptocurrency.
Despite this progress, trading of these ETFs is not yet permitted. The SEC approved the 19b-4 forms related to the ETFs, but before investors can purchase these ETFs, the regulatory body must also approve the S-1 filings.
This approval indicates a surprising regulatory shift. Earlier this year, after approving the first spot Bitcoin ETFs, the SEC appeared hesitant to engage with Ethereum ETF issuers. This stance has notably changed in recent days.
A Bloomberg analyst remarked, “A week ago, if you had suggested these ETFs would get SEC approval, I would have thought you were a bit crazy.”
Many analysts believe that the impending U.S. elections may have influenced this decision. Approving the Ethereum ETFs could be a strategic move, with the Republican Party’s strong support for the crypto industry and the Democrat-controlled SEC not wanting to alienate a large base of cryptocurrency supporters.
Looking ahead, a new report from Galaxy Digital suggests that if approved, spot Ethereum ETFs could start trading on exchanges as early as July or August.
