Connect with us

Hi, what are you looking for?

Smart Success Strategy – Investing and Stock NewsSmart Success Strategy – Investing and Stock News

Editor's Pick

SEC Approves 8 Spot Ethereum ETFs in Landmark Decision

The US Securities and Exchange Commission (SEC) announced on May 23 that it approved the launch of eight spot Ether ETFs on an accelerated basis, marking another major milestone in the cryptocurrency industry.

While the deadline for the decision only applied to the VanEck Ethereum Trust, the SEC also approved the Grayscale Ethereum Trust, the Bitwise Ethereum ETF, the iShares Ethereum Trust, the ARK 21Shares Ethereum ETF, the Invesco Galaxy Ethereum ETF, the Fidelity Ethereum Fund and the Franklin Ethereum ETF.

The ETFs are expected to generate Ether inflows upward of US$15 billion in the first 12 months. The news has already led to a surge in the price of Ether, which was around the US$3,850 mark at 6:00 p.m. EDT.

This move comes one day after the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act, the first major crypto bill to make it out of Congress. It also follows a similar decision made by the SEC in January to approve spot Bitcoin ETFs, sparking a rally in the crypto markets.

Due to the potential for Ethereum’s underlying crypto asset to be classified as a security, the approval process has been wrought with delays, with the SEC’s movements being closely watched by investors and analysts as speculation mounted in the weeks leading up to the May 23 deadline for VanEck’s proposed spot Ether ETF. In fact, in recent weeks, worry had set in that the approvals were unlikely to come.

However, on May 20, the SEC requested exchanges to update their 19b-4 filings on an accelerated basis, signaling a potentially positive outcome for the ETF applications. As anticipation grew, Bloomberg ETF analysts Eric Balchunas and James Seyffart increased their odds of VanEck’s 19b-4 form being approved from 25 percent to 75 percent.

According to multiple outlets, issuers updated their filings to confirm they will not stake ETH for yield to address SEC concerns surrounding the complexities of cryptocurrency staking, including market risks, custody and control, and potential conflicts of interest.

This landmark decision by the SEC demonstrates the increasing acceptance of cryptocurrencies as viable investment vehicles and paves the way for further innovation in the digital asset space. Seyffart pointed out that the approvals do not necessarily mean immediate launches of Ether ETFs, emphasizing that there will likely be a waiting period between approval and actual availability to investors.

Investors and market participants will be closely monitoring the ongoing developments as the Ether ETFs prepare for their highly anticipated launch.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
Enter Your Information Below To Receive Latest News, And Articles.



    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    The energy revolution is here to stay, and electric vehicles (EVs) have become part of the mainstream narrative. Despite geopolitical tensions and uncertainty, the...

    Editor's Pick

    Overview Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s...

    Editor's Pick

    Uranium is an important energy sector commodity, and its rising value has attracted investor interest. 2023 has seen uranium prices solidly above the important...

    Investing

    A new survey shows that the presidential race between former President Donald Trump and President Biden is thin, but Biden faces a deficit in...

    Disclaimer: smartsuccessstrategy.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 smartsuccessstrategy.com