The Securities and Exchange Commission (SEC) of the United States has taken a significant step forward by including an application for a spot Ether (ETH) exchange-traded fund (ETF) from asset manager ProShares. This action comes approximately three weeks after the SEC greenlit similar applications from eight other investment firms, indicating a rising acceptance and enthusiasm for cryptocurrency investment opportunities.

SEC’s Proposed Rule Change

A filing dated June 10 revealed that the New York Stock Exchange (NYSE) Arca submitted a proposal to the SEC to list and trade shares of the ProShares Ethereum ETF. The SEC is now inviting public comments on this ETF application for a 21-day period after its publication in the Federal Register. Within 45 days, the commission will decide to approve, disapprove, or extend the decision timeline.

Approval of Spot ETH ETFs

Following the SEC’s approval on May 23 of 19b-4 filings from eight asset management firms seeking to list and trade spot Ether ETFs on U.S. exchanges, a significant development occurred. While this approval marked a crucial milestone in the cryptocurrency investment field, final authorization requires the SEC to endorse S-1 registration statements for the spot Ether ETFs before they can commence trading. This approval process is predicted to conclude around July after potentially taking several months.

Insights from James Seyffart

ETF analyst James Seyffart expressed his views on the ProShares application in a post shared on X. Seyffart suggested that the ProShares ETF might not launch simultaneously with other approved ETFs, emphasizing the uncertainty surrounding the ProShares ETF’s launch timeline compared to its counterparts. ProShares has previously obtained SEC approval to list and trade shares of a spot investment product linked to ETH futures, showcasing its prominent position in the evolving crypto investment market.

SEC’s Pending Approval for Spot ETH ETF

While the SEC has granted approval for various crypto-related ETFs, it remains uncertain whether ProShares’ spot Ether ETF application will receive the final nod. The SEC’s consideration of the application does not ensure its approval, indicating a cautious approach. The regulatory involvement of the SEC in the cryptocurrency domain highlights a broader trend of increased scrutiny and regulation in the market.

The SEC’s recent actions, including the addition of ProShares’ spot ETH ETF application, underscore the shifting landscape of how digital assets are viewed and regulated. This move indicates a growing interest and acceptance of cryptocurrency investment avenues.