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Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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SEC Approves 3 Spot Ethereum ETFs Trading July 23
Regulation | Jul 16, 2024
Image: Freepik/benzoix
Three (3) Ethereum ETFs receive preliminary approval from the SEC to begin trading early next week
The U.S. Securities and Exchange Commission (SEC) has given preliminary approval to three asset managers BlackRock, VanEck, and Franklin Templeton to begin trading spot Ethereum (ETH) Exchange-Traded Funds (ETFs) early next week, assuming no hiccups.
- The three companies have until the end of the week to complete their final offering documentation, and if they do, trading is likely scheduled to start on July 23, 2024. Ethereum is now the second cryptocurrency to be approved as an ETF, after the SEC approved a slew of spot Bitcoin ETFs earlier this year.
- Analysts are predicting that similar to the approval of Bitcoin ETFs, which attracted large interest and investment at launch, the approval of Ethereum ETFs will draw a variety of institutional investors who were previously sitting on the sidelines due to regulatory concerns. According to current optimistic trends, Ethereum may hit $4,500 thanks to improved investor confidence and clearer regulations.
See: SEC Approves 19b-4 Forms of First Batch Ethereum ETFs
- As U.S. regulators are paving the way for crypto ETFs, there's increased likelihood of additional cryptocurrencies like Solana ETF being approved in the near future.
- Next week, Ether products from Invesco Galaxy, ARK 21Shares, Fidelity, Grayscale and Bitwise are also expected to launch imminently, as soon as next week based on the timing of their final offering documents.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
Impact on Future Crypto Regulations
The recent approval of spot Bitcoin and Ethereum ETFs, demonstrates that the SEC is prepared to collaborate with asset managers to introduce novel investment products to the market. This fact incentivizes additional companies to submit applications for approval of ETFs for other cryptocurrencies, which would result in a stronger and and more diversified market.
See: New US Crypto Tax Reporting Rules Starting 2025
Hester Peirce, an SEC commissioner:
“The approval of Ethereum ETFs is a significant step forward in bringing greater transparency and regulatory oversight to the crypto markets. It demonstrates that the regulatory framework can adapt to new technologies while ensuring investor protection.”
Outlook
The legal approval of more digital assets may open the door for institutional investors to embrace them more widely, spurring blockchain innovation and further integration in the financial industry. That would increase public trust, and also longer term, increase market stability and growth.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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