On May 23, the US Securities and Exchange Commission (SEC) made a historic decision by formally approving eight applications for spot Ethereum ETFs from BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton.
The regulator's approval of the Forms 19b-4 filed by issuers seeking to launch spot Ethereum ETFs came as a surprise to many crypto market participants, given the SEC's previous inaction on such proposals.
At the same time, some experts suggest that political pressure on the SEC from the House of Representatives contributed to the decision.
Bloomberg Intelligence Senior Analyst Eric Balchunas published a letter on his X page in which a group of House lawmakers urged the SEC to approve Ethereum ETFs.
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These Ethereum ETFs are expected to be available for trading on three leading national exchanges: CBOE, NYSE ARCA, and NASDAQ. This will open up new opportunities for investors looking to gain exposure to the growing cryptocurrency market.
Although formal approval has been received, ETF trading will not begin until the issuers receive approval of their S-1 registration forms, CoinGape reported. This process is expected to take several weeks, but the timeline for approval has not yet been determined.
Market experts are optimistic about the prospects of the Ethereum ETF, predicting that it will raise significant funds. According to analysts, the Ethereum ETF can attract impressive amounts of investment, which will contribute to the further growth of the second-most capitalized cryptocurrency.
At the same time, Eric Balchunas is not so optimistic about Ethereum ETF attracting significant funds. Earlier, he wrote that the capital share of spot ETFs based on Ethereum will be about 10%-15% of the performance of Bitcoin funds.
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It is worth noting that the approval of the Ethereum ETF was not only a key moment for investors in digital assets but also a signal that regulators are ready to adapt to the changing landscape of financial instruments.
At the time of writing, ETH is trading at $3,801.54, up 0.22% in the last 24 hours.
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