The United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23, but the approval process differed from that of the spot Bitcoin ETFs approved earlier in January.
Unlike the spot Bitcoin ETFs, which were approved by a vote from a five-member committee including SEC Chief Gary Gensler, the spot Ether ETFs received approval from the SEC’s Trading and Markets Division.
The SEC approved the 19b-4 filings from several major financial firms, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton, without additional comments beyond the official decision. The filing stated:
“For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”
While some in the crypto community were puzzled by the difference in the approval process for the two types of crypto ETFs, Bloomberg ETF analyst James Seyffart explained that such procedures are not unusual. He noted that many approvals are handled similarly, and it would be impractical for the SEC to hold an official vote for every decision or document. He added that it would have been interesting to see the political alignments if there had been a vote.
Despite Seyffart’s explanation, some remain skeptical. One user on X pointed out that a commissioner could challenge the decision within the next 10 days, suggesting that delegated authority might be used to avoid politically sensitive votes.
Another X user speculated that the SEC’s decision could be influenced by factors such as political pressure, upcoming elections, and the implementation of environmental, social, and governance (ESG) rules.
The crypto industry celebrated the SEC’s spot Ether ETF approval, calling it a “historic move.”
Although the 19b-4 forms have been approved, the S-1 registration statements still need to be processed before trading can begin. This means that the debut of spot Ether ETFs on exchanges could still be weeks or months away as the issuers await the SEC’s approval of the S-1 registrations.
Summary Review: The SEC’s approval of spot Ether ETFs marks a significant step for the cryptocurrency market, though the path to trading remains complex. The differing approval processes for Bitcoin and Ether ETFs highlight the nuances in regulatory approaches, reflecting broader dynamics within the financial and political landscape.
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