The spot Ethereum ETF has finally received official approval from the US Securities Regulator, with 19B-4 forms for 8 applications being approved. The next step is for the SEC to approve the S-1 forms, allowing these ETFs to be traded on the stock markets. Although this may not happen immediately, investors are pleased that the most crucial step has been completed.
In the past, the SEC expressed doubts about whether Ether should be classified as a security. This was officially stated in the Wells Notices sent to crypto companies. However, the SEC has now backtracked and granted initial approvals to all 8 applications, possibly due to political reasons. The approvals for the S-1 Forms will be issued in a few weeks. Stay updated with the latest technology news on NEWSLINKER.
Here are some important details summarized in bullet points:
– After careful review, the Commission has determined that the Proposals align with the Exchange Act and rules for a national securities exchange.
– The approval has been granted for Commodity-Based Trust Shares, officially designating the ETF as a commodity.
– A 99% correlation between CME and spot ETH pricing has been accepted.
– Each Proposal includes consistent elements with other ETPs that have been approved by the Commission. These include availability of pricing information, transparency of portfolio assets, and oversight procedures.
– One commentator argued that the Proposals should be approved because CME ether futures ETFs, which are registered under the 1940 Investment Company Act, already trade on national securities exchanges and pose a greater risk of underlying asset manipulation. Another commentator pointed out that there is no difference in approving spot bitcoin ETPs and spot ether ETPs at this stage.
– The SEC has provided an explanation for granting approval, with J. Matthew DeLesDernier from the SEC signing the document, making it a historic moment.
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Disclaimer: The information in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and they should conduct their own research.
