Ethereum ETF Approval: 7 Things to Know as the SEC Signs Off on New Funds

Spot Ethereum ETFs are coming to Wall Street as the SEC approves rule changes to let exchanges list them

By Dana Blankenhorn, InvestorPlace Contributor May 24, 2024, 9:46 am EDT
  • The SEC cleared the way for exchanges to list spot ETFs based on Ethereum (ETH-USD).
  • The funds themselves must still be approved.
  • This shows that the No. 2 crypto will be coming to Wall Street soon in a bigger way.聽
Ethereum ETF - Ethereum ETF Approval: 7 Things to Know as the SEC Signs Off on New Funds

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The U.S. Securities and Exchange Commission (SEC) to approve spot exchange-traded funds (ETFs) for cryptocurrency Ethereum (ETH-USD).

The decision comes six months after the SEC approved spot Bitcoin (BTC-USD) ETFs. The Bitcoin funds already have seen net inflows of $12 billion. The price of Bitcoin is up 78% over the last six months.

But market reaction to the Ethereum ETF approval was more muted. Ethereum is down 1.7% over the last 24 hours.

What to Know 抖阴最新版 New Ethereum ETFs

Crypto analysts were taken by surprise. Since the SEC action had been expected by many experts, some said it was . Ethereum prices jumped 21% in the five days leading up to the decision. They’re up 58% so far in 2024.

  1. Julio Moreno of CryptoQuant the discount between Ethereum’s price and that of the Grayscale ETF Trust (OTCMKTS:ETHE) in recent days. The same thing happened before spot Bitcoin ETF approval.
  2. The ETH ETFs are expected to be smaller than their Bitcoin counterparts.
  3. Blackrock (NYSE:BLK) will be among the companies sponsoring them. Nasdaq, the NYSE Arca exchange, and the CBOE all plan to list Ethereum ETFs.
  4. The SEC action did not approve the funds themselves.
  5. Instead, it approved applications from the exchanges to
  6. The agency’s view of crypto has been softening since it lost a lawsuit over Bitcoin ETFs to Grayscale .
  7. The SEC still has disputes with some crypto managers. It has against Coinbase (NASDAQ:COIN) and Kraken saying that “staking” as a service represents an unregistered security. Staking lets investors collect interest on Ethereum holdings. A judge ruled the Coinbase suit in March. The removal of staking makes the Ethereum ETFs less attractive, according to many experts.

What Happens Next?

Final approval for specific spot funds could take weeks, but it .

It’s clear now that Ethereum is coming to Wall Street in a larger way. Investors who want to put assets into it directly via ETFs will soon have a clear path forward.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

has been a financial and technology journalist since 1978. He is the author of , available at the Amazon Kindle store. Tweet him at , connect with him on or subscribe to his .

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