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In a landmark move, the US Securities and Exchange Commission (SEC) has given the green signal for the potential launch of eight exchange-traded funds (ETFs) linked to ether, the second-largest cryptocurrency globally. This decision follows the earlier approval of bitcoin ETFs, marking a pivotal shift in the regulatory environment for digital assets.
The SEC's approval of ether ETFs marks a notable shift from its historical stance against the crypto industry. Key legal victories, such as Grayscale's success in challenging the SEC's decisions, have influenced the agency's reconsideration of spot ETF applications.
Crucial Rule Changes Pave the Way
The SEC's approval involved pivotal rule changes facilitating ETFs directly investing in ether, Ethereum's native cryptocurrency. Major financial entities such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton received the green light. However, further approvals are necessary before these products can officially debut.
Notably, the SEC's decision followed months of anticipation, with the regulator unexpectedly providing feedback on pending applications earlier in the week. This prompt action likely stemmed from impending deadlines for responses to ether ETF applications.
SEC Approval Anticipation Spurs Ether Surge
The anticipation surrounding these approvals has sparked a surge in ether's price, climbing over 20% since Monday and more than 60% since the year's commencement. This surge indicates investors' growing confidence in cryptocurrency's mainstream acceptance.
Commenting on the development, Sergey Nazarov, co-founder of Chainlink, emphasized the significance of Ethereum ETF approval in propelling crypto adoption within capital markets, as quoted on business today. Similarly, Sumit Gupta, Co-founder of CoinDCX, hailed the SEC's green light for spot Ether ETFs as a “watershed moment”, nurturing mainstream adoption and reflecting a maturing regulatory environment, the above source indicated.
Bitcoin ETFs Like to Rally on Ether Approval
The SEC's approval sets the stage for the potential inclusion of ether in investment portfolios, including retirement accounts and pension plans. The SEC's move should act as a cornerstone for the entire crypto industry and boost bitcoin prices too, which have been gaining traction since receiving approval earlier this year (read: 4 Reasons to Bet on Bitcoin ETFs for the Rest of 2024).
Investors should also note thatin Washington, a bill aimed at reducing the SEC's influence on crypto and establishing the Commodity Futures Trading Commission (CFTC) as the primary regulator for cryptocurrencies has passed the US House of Representatives. This legislative push reflects evolving attitudes toward crypto regulation.
Against this backdrop, investors can keep track of bitcoin ETFs like Grayscale Bitcoin Trust (GBTC - Free Report) , iShares Bitcoin Trust (IBIT - Free Report) , Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) , ARK 21Shares Bitcoin ETF (ARKB - Free Report) and Bitwise Bitcoin ETF Trust (BITB - Free Report) for gains. The fund GBTC, IBIT, FBTC, ARKB and BITB added 1.31%, 1.23%, 1.19%, 1.24% and 1.15%, respectively, in after hours on May 23, 2024.
Image: Bigstock
Bitcoin ETFs to Gain as SEC Approves Ether ETFs
In a landmark move, the US Securities and Exchange Commission (SEC) has given the green signal for the potential launch of eight exchange-traded funds (ETFs) linked to ether, the second-largest cryptocurrency globally. This decision follows the earlier approval of bitcoin ETFs, marking a pivotal shift in the regulatory environment for digital assets.
The SEC's approval of ether ETFs marks a notable shift from its historical stance against the crypto industry. Key legal victories, such as Grayscale's success in challenging the SEC's decisions, have influenced the agency's reconsideration of spot ETF applications.
Crucial Rule Changes Pave the Way
The SEC's approval involved pivotal rule changes facilitating ETFs directly investing in ether, Ethereum's native cryptocurrency. Major financial entities such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton received the green light. However, further approvals are necessary before these products can officially debut.
Notably, the SEC's decision followed months of anticipation, with the regulator unexpectedly providing feedback on pending applications earlier in the week. This prompt action likely stemmed from impending deadlines for responses to ether ETF applications.
SEC Approval Anticipation Spurs Ether Surge
The anticipation surrounding these approvals has sparked a surge in ether's price, climbing over 20% since Monday and more than 60% since the year's commencement. This surge indicates investors' growing confidence in cryptocurrency's mainstream acceptance.
Ether currently has a market capitalization of more than $450 billion, making up about 18% of crypto's total market value, according to CoinMarketCap, as quoted on Yahoo Finance.
Industry Perspectives
Commenting on the development, Sergey Nazarov, co-founder of Chainlink, emphasized the significance of Ethereum ETF approval in propelling crypto adoption within capital markets, as quoted on business today. Similarly, Sumit Gupta, Co-founder of CoinDCX, hailed the SEC's green light for spot Ether ETFs as a “watershed moment”, nurturing mainstream adoption and reflecting a maturing regulatory environment, the above source indicated.
Bitcoin ETFs Like to Rally on Ether Approval
The SEC's approval sets the stage for the potential inclusion of ether in investment portfolios, including retirement accounts and pension plans. The SEC's move should act as a cornerstone for the entire crypto industry and boost bitcoin prices too, which have been gaining traction since receiving approval earlier this year (read: 4 Reasons to Bet on Bitcoin ETFs for the Rest of 2024).
Investors should also note thatin Washington, a bill aimed at reducing the SEC's influence on crypto and establishing the Commodity Futures Trading Commission (CFTC) as the primary regulator for cryptocurrencies has passed the US House of Representatives. This legislative push reflects evolving attitudes toward crypto regulation.
Against this backdrop, investors can keep track of bitcoin ETFs like Grayscale Bitcoin Trust (GBTC - Free Report) , iShares Bitcoin Trust (IBIT - Free Report) , Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) , ARK 21Shares Bitcoin ETF (ARKB - Free Report) and Bitwise Bitcoin ETF Trust (BITB - Free Report) for gains. The fund GBTC, IBIT, FBTC, ARKB and BITB added 1.31%, 1.23%, 1.19%, 1.24% and 1.15%, respectively, in after hours on May 23, 2024.