{"id":13772,"date":"2024-05-24T10:46:00","date_gmt":"2024-05-24T07:46:00","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-approves-spot-ethereum-etfs-key-developments\/"},"modified":"2024-05-24T10:46:00","modified_gmt":"2024-05-24T07:46:00","slug":"sec-approves-spot-ethereum-etfs-key-developments","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-approves-spot-ethereum-etfs-key-developments\/","title":{"rendered":"SEC Approves Spot Ethereum ETFs: Key Developments"},"content":{"rendered":"<p>On May 23, the U.S. Securities and Exchange Commission (SEC) <a href=\"https:\/\/www.sec.gov\/files\/tm\/lk87adfs99.pdf\">approved<\/a> 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum.<\/p>\n<p>The companies receiving approval include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK Invest\/21Shares, Invesco\/Galaxy, and Bitwise.<\/p>\n<p>However, the regulator did not grant permission for Hashdex, whose application deadline expires on May 30.<\/p>\n<p>Trading will commence once the SEC signs the registration statements on Form S-1.<\/p>\n<p>In anticipation of the approval, the ETH price surged to $3900, but by the time of writing, it had fallen to $3680.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/_zbUB-xngOV6hEFnGPZEKjTtwthQDjzj51fqWgyFMxbOfv1u67XX101oL5RAMFc1YaN6JO9sbv7UUKXVVFTDMGbYa4Tkwfc_SvS35QwmLhYGmBGdRU_aaW4Bao_OFYuOeGyIxWZH6xFk03kDU8QTmZw\" alt=\"SEC \u043e\u0434\u043e\u0431\u0440\u0438\u043b\u0430 \u0441\u043f\u043e\u0442\u043e\u0432\u044b\u0435 Ethereum-ETF. \u0412\u0441\u044f \u0430\u043a\u0442\u0443\u0430\u043b\u044c\u043d\u0430\u044f \u0438\u043d\u0444\u043e\u0440\u043c\u0430\u0446\u0438\u044f\"\/><figcaption class=\"wp-element-caption\">15-minute ETH\/USDT chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/symbols\/ETHUSDT\/\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>According to <a href=\"https:\/\/www.coinglass.com\/LiquidationData\">Coinglass<\/a>, amid increased volatility, the market&#8217;s liquidation volume reached $382 million in a day \u2014 the highest since early May. The majority ($149 million) was in Ethereum longs.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/NhDQt7ZzQwON76JRGUd4ExoT3hFCfECLn2GrX_dFRUgMGKSMEs1UMwOiv9MMz_QaIW-WmgcMO3rwL-6seA0Ty6FDPLiFz02Nf-VAunq22ljeWmh4R96rN8rGN76MMgXJB7nmZymlIULN9IXBO9-Ksso\" alt=\"SEC \u043e\u0434\u043e\u0431\u0440\u0438\u043b\u0430 \u0441\u043f\u043e\u0442\u043e\u0432\u044b\u0435 Ethereum-ETF. \u0412\u0441\u044f \u0430\u043a\u0442\u0443\u0430\u043b\u044c\u043d\u0430\u044f \u0438\u043d\u0444\u043e\u0440\u043c\u0430\u0446\u0438\u044f\"\/><figcaption class=\"wp-element-caption\">Liquidation map. Data: Coinglass.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Community Reaction<\/h2>\n<p>Bloomberg exchange analyst James Seyffart was among the first to comment on the approval.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">BOOM!! APPROVED! There it is. The SEC just approved spot <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> ETFs. What a turn of events. It&#8217;s really happening.<\/p>\n<p>h\/t <a href=\"https:\/\/twitter.com\/PhoenixTrades_?ref_src=twsrc%5Etfw\">@PhoenixTrades_<\/a> <a href=\"https:\/\/t.co\/KQ39mDyCbT\">pic.twitter.com\/KQ39mDyCbT<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1793750784624214517?ref_src=twsrc%5Etfw\">May 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFor clarity: this doesn&#8217;t mean [ETFs] will start trading tomorrow. This is just the 19b-4 approval. S-1 documents also need to be approved, which will take time. We expect this to take a couple of weeks, but it could be longer,\u201d he wrote.<\/p>\n<\/blockquote>\n<p>Matthew Sigel, head of digital asset research at VanEck, expressed confidence in a positive future for the industry.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We are so thrilled to confirm that the SEC has approved, pursuant to Section 19(b) of the Securities Exchange Act of 1934, our exchange partner CBOE\u2019s proposed rule change to list and trade a <a href=\"https:\/\/twitter.com\/vaneck_us?ref_src=twsrc%5Etfw\">@vaneck_us<\/a> spot <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> ETF on the CBOE! ??<\/p>\n<p>TLDR: We expect the improved political\u2026 <a href=\"https:\/\/t.co\/o6ZbFWKExi\">pic.twitter.com\/o6ZbFWKExi<\/a><\/p>\n<p>\u2014 matthew sigel, recovering CFA (@matthew_sigel) <a href=\"https:\/\/twitter.com\/matthew_sigel\/status\/1793752365645856796?ref_src=twsrc%5Etfw\">May 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe improved political environment will lead to further victories for investors and digital asset developers through new laws and projects that attract investments in Bitcoin, Ethereum, and other open-source software,\u201d added the top manager.<\/p>\n<\/blockquote>\n<p>Representatives of the management company Bitwise called the approval of spot ETH-ETFs a \u201chistoric step that will draw attention to the second-largest crypto asset.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s official: Investors are one step closer to a spot Ethereum ETF.<\/p>\n<p>Today, the SEC approved the NYSE\u2019s 19b-4 filing for Bitwise\u2019s first-ever spot Ethereum ETF. It\u2019s a historic move that puts the spotlight on the second-largest crypto asset. At Bitwise, our mission is to help\u2026 <a href=\"https:\/\/t.co\/hjgsrdgQtd\">pic.twitter.com\/hjgsrdgQtd<\/a><\/p>\n<p>\u2014 Bitwise (@BitwiseInvest) <a href=\"https:\/\/twitter.com\/BitwiseInvest\/status\/1793753848193876202?ref_src=twsrc%5Etfw\">May 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 class=\"wp-block-heading\">Not a Security<\/h2>\n<p>Industry experts view the approval of Ethereum-based exchange-traded funds as an \u201cimplicit acknowledgment\u201d by the Commission that the asset is not a security. On the Bankless podcast, Seyffart explained this position.<\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/lx4pwSXycck?si=PRBqhQ5ccsE59Co5\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThese are trust shares based on commodities, so by approving them, the SEC is explicitly stating that it does not intend to apply the definition of a security to ETH,\u201d he clarified.<\/p>\n<\/blockquote>\n<p>Digital asset lawyer Justin Brauder <a href=\"https:\/\/x.com\/jlb410\/status\/1793037184582226259\">believes<\/a> that if Ethereum-ETFs receive S-1 approval, \u201cthe debate will end \u2014 Ether is not a security.\u201d<\/p>\n<p>Adam Cochran, a partner at venture firm Cinneamhain Ventures, looked even further. In his view, such a \u201cmindset\u201d of the regulator could extend to tokens of other projects.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">By the way, the most important things here isn\u2019t the ETF, it\u2019s:<\/p>\n<p>-Total change in stance by admin, that forces Gensler to concede.<\/p>\n<p>-ETH is a commodity, even with its current attributes.<\/p>\n<p>-That means we can extrapolate to *A LOT* of other projects what elements matter in security\u2026 <a href=\"https:\/\/t.co\/rFhhtoA2NK\">https:\/\/t.co\/rFhhtoA2NK<\/a><\/p>\n<p>\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) <a href=\"https:\/\/twitter.com\/adamscochran\/status\/1793755532181766336?ref_src=twsrc%5Etfw\">May 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cETH is a commodity, even with its current attributes. This means we can apply this to a multitude of other projects, determining which elements matter for security. Today, many things have likely become commodities, even if some are not yet aware of it,\u201d the expert emphasized.<\/p>\n<\/blockquote>\n<p>However, some experts noted that the SEC may still pursue industry participants involved with Ethereum.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201c[The agency] will try to thread this needle and say that they do not intend to call ETH itself a security, but an asset locked in staking might be a security. [\u2026] I do not believe they are going to do this anytime soon,\u201d added Seyffart.<\/p>\n<\/blockquote>\n<p>Notably, the decision to launch Ethereum funds was made by the SEC&#8217;s Division of Trading and Markets, rather than Chairman Gary Gensler and four other senior officials.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFor the Commission by the Division of Trading and Markets pursuant to delegated authority,\u201d the <a href=\"https:\/\/www.sec.gov\/files\/tm\/lk87adfs99.pdf\">order<\/a> states.<\/p>\n<\/blockquote>\n<p>Seyffart <a href=\"https:\/\/x.com\/JSeyff\/status\/1793788787941601355\">called<\/a> the agency&#8217;s decision to use delegated authority normal. According to him, this is usually \u201chow things are done.\u201d<\/p>\n<p>On May 23, the lower house of the U.S. Congress passed a bill on the structure of the crypto market, known as FIT21, aimed at regulating the industry as a whole. The document defines the powers of the SEC and the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> in overseeing the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 23, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum. The companies receiving approval include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK Invest\/21Shares, Invesco\/Galaxy, and Bitwise. However, the regulator did not grant permission for Hashdex, whose application deadline expires on May 30. Trading [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,46,1150,36,128,26],"class_list":["post-13772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-ethereum","tag-news-plus","tag-regulation","tag-sec","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=13772"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13772\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/13771"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=13772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=13772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=13772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}