Analysis - US SEC Approval of Ether ETF Regulatory Filings

The recent approval by the U.S. Securities and Exchange Commission of regulatory filings for Ether ETFs has generated significant buzz and interest in the cryptocurrency sphere. James Seyffart, an ETF analyst at Bloomberg Intelligence, shared insights on the unexpected developments.

Progress towards making Ether ETFs accessible in the U.S. has gained momentum with the SEC's endorsement of critical regulatory filings, reversing the previously gloomy outlook within days.

The SEC's recent approval of essential regulatory filings for spot ether (ETH) exchange-traded funds marks a noteworthy achievement for the crypto market. Despite this positive development, the ETFs are still pending trading clearance. While the 19b-4 forms linked to the ETFs have received approval, investors must await the green light for the S-1 filings to engage in trading.

The SEC's change in attitude towards ether ETF issuers, from initial apathy despite approval for spot bitcoin ETFs, showcases a notable shift in regulatory approach.

Reflecting on the recent turn of events, James Seyffart observed the surprising change in the SEC's stance in an interview preceding the official announcement.

Grayscale, a prominent industry participant, welcomed the regulator's approval of its 19b-4 form, emphasizing the potential advantages of incorporating Ethereum within the U.S. regulatory framework through ETFs.

Key spot ether ETF issuers such as BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Ark/21Shares, and Invesco/Galaxy are on standby for final approvals. While the endorsement of the 19b-4 filings signifies regulatory willingness towards spot ether ETFs, the ultimate approval via S-1 forms is still awaited.

Anticipated delays are on the horizon before S-1 approvals translate into the commencement of ETF trading, likely requiring a waiting period of at least a week or more. Industry projections hint at a time gap spanning weeks rather than months, although exact timelines remain uncertain.

Recent reports of issuers being instructed to update their 19b-4 filings ahead of the SEC's looming decision on VanEck's filing added to the industry's mounting anticipation.

Industry professionals viewed the approval as a significant stride forward, while the SEC spokesperson refrained from elaborating beyond the official statement released on Thursday.

Andrew Jacobson, Head of Legal at 21Shares, emphasized the importance of the recent approval, while Rob Marrocco, Global Head of ETP Listings at Cboe, expressed enthusiasm for the impending expansion of offerings.

Matthew Sigal, VanEck's Head of Digital Assets Research, conveyed the company's confidence in being the first to launch its spot ether ETF, signaling their readiness to lead in this emerging arena.