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SEC feedback suggests coordinated launch of multiple Ether ETFs, mirroring Bitcoin ETF strategy.
The SEC is leaning towards approving spot Ethereum ETFs, according to a report by Barrons. Just days ago, it seemed likely that the SEC would reject efforts by BlackRock, VanEck, and others to launch exchange-traded funds holding Ether. However, SEC staff informed exchanges on Monday that they are now inclined to approve these products, pending resolution of certain comments on the applications.
Ether, with a market value of $455 billion, is the second-largest crypto, following Bitcoin. The SEC has not yet approved any ETFs holding the currency itself, although ETFs holding Ether futures are permitted.
The SEC faces a final deadline on Thursday to approve or reject a filing by VanEck for an ETF holding spot Ether. Similar deadlines for other firms, including ARK Invest, 21Shares, Grayscale Investments, Fidelity, BlackRock, and Franklin Resources, will follow in the coming months.
One person familiar with the matter indicated that the SEC provided feedback on applications to most issuers, suggesting a coordinated launch of several Ether ETFs. This approach mirrors the launch of the first spot Bitcoin ETFs in January, which helped propel Bitcoin to a 60% gain this year.
Reports of the SEC’s potential approval have already impacted the market, with Ether prices rising 23% to $3,790 and Bitcoin up 5% to $70,350 on Tuesday. ETF approvals could open the Ether market to institutional investors and increase interest in smaller cryptocurrencies like Solana and Avalanche.
If approved, the ETFs could benefit investors in the Grayscale Ethereum Trust, which trades at a discount to the value of its Ether holdings. Grayscale is seeking to convert the trust into an ETF, which would close the discount and provide immediate returns to investors.
Despite the progress, the SEC has yet to provide feedback on the S-1 filings required for the issuance of new securities, which could delay the launch of the ETFs.
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