The SEC has approved form 19b-4 for Ethereum Spot ETFs from BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton.
According to tier10k , an SEC spokesperson said they would not comment further beyond the ETH ETF approval order.
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SEC approves Ethereum Spot ETF
Although the forms have been approved, Ether ETF issuers need to have an active S-1 registration statement before trading can begin. The SEC has begun conversations with issuers about their S-1 forms, and some analysts speculate that it could take several weeks.
The SEC's approval of the Ethereum Spot ETF is a good sign for the market as previously, most experts thought that the SEC would "struggle" many times like what it did with the Bitcoin ETF . However, recently, some changes by the SEC have led experts to believe that the SEC's approval rate increased from 25% to 75%.
From the perspective of Jake Chervinsky - Chief Lawyer of Variant Fund, the SEC's approval document for Ethereum Spot ETF is quite short, not saying much. The SEC just said the correlation data between Ethereum Futures and Spot is huge. This sounds like the SEC was forced to approve the Ethereum Spot ETF because the SEC had previously approved the Ethereum Futures ETF or was pressured by someone.
As noted by BeInCrypto, a bipartisan group of lawmakers in the House of Representatives previously called on the SEC to approve Ethereum Spot ETFs. The Biden administration's recent stance on cryptocurrency has also softened somewhat as the White House has opposed (though still not vetoed) the FIT21 bill . The move most likely comes from former US President Donald Trump's recent openness towards cryptocurrencies, which included accepting November election donations in eight types. Various cryptocurrencies.
Although the SEC approved the Ethereum Spot ETF, analysts predict that it may struggle to attract the attention of investors. Quoting Bloomberg ETF analyst Eric Balchunas, Ethereum ETFs could receive 10 to 15% of the assets their Bitcoin counterparts receive. That would make them cost between $5 and $8 billion.
Following the SEC's move to approve the Ethereum Spot ETF, Brian Kelly went on CNBC and said he believes the next coin will be the Solana ETF (SOL). At the time of writing, after the approval news, ETH price is currently trading at 3,830 USD, down slightly by 0.1% in the past 1 hour.
Ethereum is not a security
The SEC's approval of the Ethereum Spot ETF may indicate that the agency has tacitly admitted that ETH is not a security as it has been trying to portray it up to now. Because, if the SEC still coins ETH as a security, they will need a different process than the current one to approve it. Therefore, this will likely be a big win for Ethereum supporters in particular and the cryptocurrency market in general.
Coinbase's chief attorney also said that there is no doubt that the SEC has recognized ETH as a commodity, not a security, through this approval of the ETH ETF. Just a few weeks ago, a lawsuit filed by ConsenSys against the SEC alleged that the regulator had secretly considered ETH an illegal, unregistered security for over a year. It is possible that pressure from the government and related parties forced the SEC to make this decision.
