It is finally here, the end of a turbulent journey. US Securities and Exchange Commission (SEC) The issuance of Spot Ethereum Exchange Traded Funds has been approved. The decision was made just five months ago, when the same agency had approved the Spot Bitcoin ETFs at the beginning of the year.
It is also the country’s first crypto-based ETF. This decision represents an unprecedented shift in institutional investor access to the world’s second-largest crypto currency.
It is important to note that the word “you” means “you”. official filing The SEC published the filing briefly, but took it down soon after, perhaps because the information was leaked too early. It has been published again. The SEC originally wanted to postpone the decision on approval as long as it could because of the negative perceptions about cryptocurrencies. But now, both Bitcoin and Ethereum are included in the ETF Market. The SEC will have to approve each issuer’s individual filings.
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SEC approves spot Ethereum ETFs
The market predicted what cryptocurrency would be after the launch of the Spot Bitcoin ETFs in 2024. next. All eyes are on Ethereum. Though it may seem likely, SEC sentiment has dimmed the possibility of an approved application.
The situation changed dramatically at the end of the second last week in May. It seemed to come out of the blue. Bloomberg The approval rate was increased from 25% to 70%. After that, investors began anticipating an imminent Ethereum-based offering.
This anticipation is now being rewarded, as the SEC has just approved all Spot Ethereum-based ETFs. This landmark decision has allowed the United States to offer crypto-based exchange traded funds for two of the most popular digital assets. It is also a crucial part of the larger transition in the United States’ view on digital assets.
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A multitude of companies have applied for Ether-based exchange traded funds. VanEck was one of the firms that submitted applications. Others included ARK21, Hashdex and Invesco Galaaxy. VanEck had the most pressing approval deadline.
What’s the next step in spot Ethereum ETFs?
The Ethereum ETF forms 19b-4 have now been approved. Issuers will need to wait until their S-1 form has also been approved for trading assets to begin. To offer securities to the public, these forms must be submitted. It may take the SEC longer to complete this process, especially if there is any unhappiness with Ethereum ETFs. According to the timelines for Bitcoin ETFs this could take from weeks up to months.
The market is watching to see how this situation will affect it. Bitcoin reached an all-time record in three months thanks to the offering. Experts predict that Ethereum will follow a similar path, as the anticipation for the ETF has led to an increase of almost 30% in the past 7 days. CoinMarketCap.
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Source: watcher.guru