SEC opens hearing on launch of Ethereum spot ETFs
SEC opens hearing on launch of Ethereum spot ETFs
The U.S. Securities and Exchange Commission (SEC) is reviewing applications for Ethereum spot ETFs filed by mutual funds ARK Invest and VanEck.
The SEC has requested public comments that examine the potential benefits and risks if the ETFs are approved. The regulator has set aside a 45-day period to discuss the filings.
The Chicago Board Options Exchange (Cboe BZX Exchange) filed two 19b-4 applications with the SEC to list ARK 21Shares and VanEck Ethereum ETF Investment Products.
Ark 21Shares filed its application for an ETH-based ETF on September 6, while VanEck will list its ETH-based fund in July 2021.
The ETFs will be able to track the price of Ethereum using the CME CF ether-dollar benchmark rate. The first ether futures ETF, if approved by the SEC, is expected to launch next month.
Until then, the SEC has only approved futures ETFs for BTC and ETH, as the CME futures market may offer greater investor protection.
Bloomberg analyst James Seyffarth noted that spot Ethereum ETFs from ARK 21 Shares and VanEck "will ultimately start that clock. "The Spot Ethereum ETF Race is officially on. It's early, but I'd estimate a final deadline on these applications to be around May 23, 2024," he said.
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Despite the outstanding issues, Ethereum spot ETFs could increase liquidity and interest in the Ethereum ecosystem.
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