SEC Approves Expedited Launch of Spot Ethereum ETFs

The US Securities and Exchange Commission (SEC) has announced the approval of spot Ethereum ETFs for an expedited launch, as per a document on the SEC's website. These Ethereum ETFs must complete a several-week process, including finalizing S-1 registration statements—a requirement for listing securities—and securing exchange agreements through multiple rounds of SEC communication.

This development is anticipated to attract significant institutional investment into the Ethereum market. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, predicts inflows between $15 to $45 billion in the first year.

To address the SEC's concerns, prospective spot Ethereum ETF issuers—such as Fidelity, Franklin Templeton, Ark, Invesco, Grayscale, Bitwise, and VanEck—have amended their filings to confirm they will not engage in ETH staking for yield.

Earlier this week, Bloomberg analysts Eric Balchunas and James Seyffart raised the likelihood of a spot Ethereum ETF being approved this month from 25% to 75%.

The approval of Ethereum ETFs and the recent passage of the FIT21 crypto bill indicate a potential shift in the Biden Administration’s approach to cryptocurrency, reflecting former President Trump's commitment to supporting the industry and promoting a business-friendly environment in the US.

This approval follows the SEC's authorization of 11 spot Bitcoin ETFs just five months ago, signifying a notable change in the regulatory environment for cryptocurrency in the US.