KEY POINTS
- The regulator said Thursday that the funds were ‘approved on an accelerated basis’
- Some observers said the approval indicates Ether has become a commodity
- Consensys said the approval was a good sign, but it highlighted the SEC’s ‘troublesome’ approach to crypto
The U.S. Securities and Exchange Commission (SEC) has approved spot Ether (ETH) exchange-traded funds (ETFs), and the cryptocurrency community is celebrating, making the topic a trend on X.
Hashtag EthereumETF was trending on X (formerly Twitter) on Thursday night after multiple industry experts and Wall Street analysts confirmed that the SEC had approved the much-anticipated funds, following the approval of spot Bitcoin ETFs in January.
“BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs,” Bloomberg analyst James Seyffart wrote, attaching a photo showing part of the SEC document regarding the approval that was first uploaded on X by Phoenix Trades.
“After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange,” the SEC wrote. The Wall Street regulator further noted in its conclusion that the funds are “approved on an accelerated basis.”
Seyffart clarified that the approval of the 19b-4 filings of companies seeking to trade and sell spot ETH ETFs does not mean the funds will begin trading soon. “We’re expecting it to take a couple weeks but could take longer,” he said on X.
Cryptoiz Research further explained that the approval was for exchange filings, and the forms for issuers have yet to get the regulatory agency’s green light.
The SEC approved exchange forms for spot ether ETFs, but issuers’ forms still need the green light. Exciting steps forward for Ethereum!
— Cryptoiz Research 🇮🇩🇮🇩 (@cryptoiz_IDN) May 24, 2024
Among the top groups and figures that celebrated the development were crypto investment outlet Crypto Briefing, blockchain project Pundi X, crypto trading platform BIT, and crypto miner DJ Mines.
Consensys, which took the SEC to court over the latter’s view of Ether as a security, said the approval was a step in the right direction, but the “seemingly last minute approval” only proved further that the regulator has a “troublesome ad hoc approach to digital assets.” Notably, the founder of Consensys is a co-founder of the Ethereum blockchain along with Vitalik Buterin.
On today’s SEC ruling:
While Consensys welcomes today’s decision to approve ETH Spot ETFs as a step in the right direction, this seemingly last minute approval is yet another example of the SEC’s troublesome ad hoc approach to digital assets. No other industry, market, or…
— Consensys (@Consensys) May 23, 2024
Digital assets education group Mystery of Crypto said the development means Ether, the native token of the Ethereum blockchain, “is no longer a security” and has become “a commodity.”
“This is a game changer for the hundreds of legitimate newer projects building without fanfare,” wrote Oscar Franklin Tan, the chief financial officer of Atlas Development, who said he didn’t expect the SEC would approve Ether ETFs within the decade.
When I switched to blockchain full time three years ago, never in my wildest dreams did I think I would see a US SEC approved Ether ETF this decade.
This is a game changer for the hundreds of legitimate newer projects building without fanfare.
— Oscar Franklin Tan, CFA (陳志宏) 🇸🇬🇵🇭 (@OscarFranklnTan) May 24, 2024
Prominent investor Anthony Pompliano congratulated the Ethereum community for the milestone, saying the approval was “another step to mainstream adoption of crypto.”
The SEC has officially approved the Ether ETFs.
Congratulations to everyone in the Ethereum community.
Another step to mainstream adoption for crypto.
— Pomp 🌪 (@APompliano) May 23, 2024
