Ethereum spot ETF officially approved by SEC
The US Securities Commission (SEC) has issued a notice approving all Ethereum spot ETF proposals, while recognizing ETH as a "commodity" asset.
True to experts' previous predictions, on the morning of May 24, the US Securities Commission (SEC) officially approved 8 Ethereum spot ETFs, marking a 180-degree change in just a few days. via.
Specifically, the SEC approved the Ethereum spot ETF proposal of Grayscale and Bitwise to trade on the NYSE stock exchange; iShares (BlackRock) on Nasdaq; along with VanEck, ARK/21 Shares, Invesco, Fidelity and Franklin Templeton on the Cboe BZX stock exchange.
However, Bloomberg ETF analysts note that the SEC has only approved Ethereum ETF proposals based on 19b-4 filings. According to proper procedures, ETF issuers need to complete the S-1 file and submit it to the securities commission to be able to determine the time to officially start trading.
Not stopping there, the SEC's announcement also recognized Ethereum ETFs as "commodity" asset trading funds, indirectly rejecting the "securities" argument for ETH that was threatened by the commission. threatened in recent months.
Ethereum is also the second cryptocurrency approved by the SEC to establish an ETF, following Bitcoin just 4 months earlier.
The news of the SEC approving the Ethereum ETF was previously "hinted" by many parties, showing that all preparations are ready for the second historic "nod" of Chairman Gary Gensler.
Securities exchange Cboe BZX quickly amended its ETH spot 19b-4 fund approval application after being requested by the SEC - the type of application commonly used for the purpose of notifying the SEC of changes to the ETF proposal and is one of the necessary documents to move towards approval.
VanEck's Ether spot ETF has also been officially added to the ETF list on the website of Depository Trust and Clearing Corporation (DTCC). This list includes active and inactive ETFs.
Grayscale, Fidelity, Ark Invest remove ETH staking proposal to meet amended filing 19b-4 requirements. Since Mr. Gensler has long held the view that Proof-of-Stake projects have securities characteristics, it is desirable to have them included in the SEC's regulatory framework.
Similar to the first time with the Bitcoin spot ETF, to reach the decision to approve the Ethereum spot ETF, the cryptocurrency community continuously experienced many "emotional levels" and "drama" of changing the SEC's stance. Previously, analysts in the investment world such as Reuters, Bloomberg, VanEck, CoinShares... all predicted that it would be "very difficult" for the SEC to approve the registration applications for two reasons:
First, the SEC has not had constructive dialogue with ETF originators, unlike the period before the Bitcoin spot ETF.
Second is the anti-ETH stance of SEC Chairman Gary Gensler, who has recently targeted many companies in the Ethereum ecosystem such as Uniswap and Consensys, as well as continuously being vague on the question of securities classification for ETH coin.
However, in just one day on May 21, the SEC suddenly made a "turnaround" by requiring units that were submitting applications to establish an Ethereum spot ETF to submit additional 19b-4 documents. On the same day, the SEC again requested the two stock exchanges Nasdaq and CBOE to quickly update and adjust applications for listing Ethereum spot ETF trading - SEC "reminders" usually only take place before preparing for the exchange. listing and trading of new assets on the stock exchange.
After two consecutive requests in one day, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised the probability of an Ethereum spot ETF being approved this week from 25% to 75%. Even British banking giant Standard Chartered had to "reverse" its prediction that the Ethereum spot ETF would not be approved in April.
There are rumors that the SEC quickly turned its back on the Ethereum spot ETF because of "political motives" related to the results of the upcoming November presidential election. Accordingly, many sources confirm that Joe Biden's Democratic Party can win against Donald Trump - the strong candidate of the Republican Party - through the SEC's approval of the Ethereum spot ETF.
Ethereum price has also grown strongly recently in hopes of an approved Ethereum spot ETF exceeding $3,900. Because the listing of this new product will attract new capital flowing into the crypto market, especially creating a supply "shock" for ETH, expected to have about 15 - 45 billion USD inflow in First 12 months.
However, the world's second largest cryptocurrency, after the announcement of approval of the Ethereum spot ETF from the SEC, is experiencing violent fluctuations and corrections as a part of investors "sell the news".
The cryptocurrency market in the last 12 hours recorded more than 320 million USD in derivative orders liquidated, with 75% being long orders. Of which, ETH accounted for the majority with 124 million USD in burned value, double the 66 million of BTC.
