- The SEC has approved applications from the Nasdaq, Chicago Board Options Exchange (CBOE), and New York Stock Exchange (NYSE) to list ETFs tied to the price of ether.
- This approval is a significant step towards the mainstream adoption of cryptocurrency investment products.
- Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, are poised to launch these ether ETFs.
In a surprising move, the U.S. Securities and Exchange Commission (SEC) approved applications on Thursday from Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of ether. This decision represents a major win for the cryptocurrency industry, which had anticipated a rejection.
Also read: Cryptocurrencies gain as investors show optimism for ether ETFs
SEC approves ether ETFs
The SEC’s approval for Nasdaq, CBOE, and NYSE to list ether ETFs potentially paves the way for these products to begin trading later this year. While ETF issuers still need final approval before launch, Thursday’s decision is a significant milestone for both the firms involved and the broader cryptocurrency industry.
“This is an exciting moment for the industry at large,” said Andrew Jacobson, vice president and head of legal at 21 Shares. He noted it was “a significant step” towards getting the products trading. The approval came as a surprise because market participants had expected the SEC to reject the filings due to a lack of prior engagement.
Also read: Ethereum ETF: What you need to know
Regulatory hurdles and industry response
Issuers like VanEck, ARK Investments/21Shares, and BlackRock still need SEC approval for ETF registration statements. SEC Chair Gary Gensler declined to comment, and the timeline for final approval remains uncertain.
Previously, the SEC rejected bitcoin ETFs over market manipulation concerns but was compelled to approve them after a court challenge by Grayscale Investments. The ether ETF approval is expected to further integrate cryptocurrency into mainstream finance, coinciding with recent regulatory advancements in the UK and the U.S. House of Representatives.
