The U.S. Securities and Exchange Commission (SEC) has approved the launch of an Ethereum Exchange-Traded Fund (ETF) on the 23rd (local time). It’s been about five months since the SEC approved a Bitcoin ETF in January of this year.
The SEC has allowed eight companies to list their Ethereum ETF products on the exchange, paving the way for Ethereum ETF trading.
The Ethereum ETFs approved by the SEC include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
However, these eight Ethereum ETFs still need additional approval from the SEC through an S-1 form to be listed and traded on the exchange. The SEC has the power to withhold the S-1 approval.
An SEC spokesperson said, “There’s nothing more to say beyond the approval of the Ethereum ETF.”
The fact that the SEC approved the Ethereum ETF suggests a softening stance on digital assets.
This decision was made less than six months after the SEC approved a Bitcoin ETF. According to FactSet, the inflow of Bitcoin ETFs is going smoothly, surpassing $12 billion.
Richard Kerr, a law firm K&L Gates partner, pointed out to CNBC that “the approval of the Ethereum ETF product doesn’t mean similar products for other digital assets on the Ethereum platform will be approved.”
The Ethereum ETF is expected to be smaller in market size than the Bitcoin ETF. The Grayscale Ethereum Trust currently holds about $11 billion in Ethereum assets, significantly smaller than the company’s Bitcoin fund.
Steven Lubka, the CEO of Swan Private, said, “There is no staking in the Ethereum ETF product,” adding, “There are structural differences from the Bitcoin ETF, which makes the Ethereum ETF less attractive overall.”
