The Securities and Exchange Commission (SEC) has granted final approval for spot exchange-trade funds (ETFs) that hold Ethereum's ether token (ETH), marking a significant milestone in the crypto investment landscape.
The decision follows the approval of Bitcoin ETFs earlier this year, further integrating major cryptocurrencies intro traditional investment vehicles.
Ethereum ETFs made their debut in Canada in 2021, and various companies have been vying to introduce the popular cryptocurrency into the United States ETF market. Hopeful issuers have been buoyed recently by the SEC's approval of an Ethereum futures ETF in September 2023, as well as heavy hitters from Wall Street indicating their support for the introduction of the ETFs.
The Hong Kong Securities and Futures Commission (SFC) approved the launch of spot Bitcoin and ether ETFs in April, allowing ChinaAMC, Harvest Global and Bosera International to issue ETFs to Hong Kong consumers.
Soon after, in May 2024, the SEC gave the initial green light to Ethereum ETF issuers by approving the "19b-4" forms (the name given to the forms required to be completed and approved before listing a financial product on an exchange).
Now, the SEC has assessed and approved the S-1 documents, filed by the prospected issuers, which peovides detailed information about the issuer’s financial condition, business operations, and about the specific product being offered.
The latest US ETF news will likely influence further developments in Australia, after the Australian Securities Exchange (ASX) approved its first-ever Bitcoin ETF, following a successful Bitcoin ETF listing at rival exchange Cboe Australia earlier this year.
The SEC's approval of Ethereum ETFs signifies the growing acceptance of cryptocurrency in mainstream finance. As these ETFs begin trading, they are expected to pave the way for increased investment and broader adoption of digital assets.
By Michael Bacina and Luke Misthos
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