๐ ฑ๏ธโน๏ธG News ๐ ๐
Ethereum ETF is approved โ
YES.
The US Securities and Exchange Commission (SEC) approved the sale of spot Ether Exchange-Traded Funds (ETFs) in the United States on May 23, 2024. This is the SECโs second decision regarding crypto Exchange-Traded Products, after approving Bitcoin ETFs and ETP earlier this year. The SEC combined proposals from the Nasdaq, NYSE, and CBOE exchanges, which requested changes to existing rules to allow the trading of Ethereum Exchange-Traded Products (ETPs) and ETFs.
*Bipartisan push for Ethereum ETF*
A bipartisan group of US lawmakers advised the SEC in a May 22 letter to approve spot Ethereum exchange-traded funds (ETFs). The lawmakers urged the regulator to apply the same principles it used for spot Bitcoin ETFs to Ethereum ETF applications. They argued that this would demonstrate regulatory consistency. The SEC Chair hinted that a decision on the pending ETH ETF applications is imminent, advising market observers to โstay tuned.โ
*Ether ETFs expected to be smaller*
Ether ETFs are expected to be smaller, at least initially, than their bitcoin counterparts. The Grayscale Ethereum Trust currently has about $11 billion in assets, much smaller than what the firm's bitcoin fund was before its conversion. The applications approved do not apply to other crypto projects on the Ethereum network. The lack of staking in the ETF products is another reason why ether ETFs may see less demand than their bitcoin counterparts.
Price of Ethereum .
The price of ether rose just 2% after the approval, following a 20% surge from earlier in the week in anticipation of the decision. Some investors may also be on pause, as the SEC's rule change approval does not guarantee that all the funds will launch. The SEC's order approves applications from various exchanges to list eight different ether funds, but it does not approve the funds themselves or set a date for the ETFs to begin trading.
