In a landmark decision, the US Securities and Exchange Commission (SEC) approved 19b-4 filings from multiple companies, including financial giants such as VanEck, BlackRock (NYSE:BLK), Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise. This approval allows for the listing and trading of Ethereum spot ETFs on their respective exchanges.
Following the announcement of the approval, the cryptocurrency's price rose more than two per cent to $3,820. The move marks a new era for the cryptocurrency industry, as the SEC has been under scrutiny over how to classify Ether, with speculation over whether it could be considered a security. Despite these uncertainties, the 19b-4 approval is a step forward for Ether exchange-traded funds (ETFs).
As Cointelegraph explains, in order for these Ether spot ETFs to officially begin trading, issuers still need the SEC to approve their S-1 registration statements. According to industry analysts, this process could take anywhere from days to months. The SEC has already instructed filers to accelerate their 19b-4 filings on 20 May, suggesting faster movement towards the final approval stage. One notable amendment in several filings has been the elimination of staking, reflecting an effort to meet regulatory expectations and mitigate potential SEC concerns.
Yesterday, Wednesday, the US House of Representatives voted in favour of the Financial Innovation and Technology Act, to be ratified by the Senate, which seeks to bring clarity to the roles of the SEC and the Commodity Futures Trading Commission (CFTC).
In January, Bitcoin spot ETFs marked an important first step for the industry. The approval of Bitcoin ETFs significantly boosted its price, and analysts at QCP Capital suggest that the approval of Ether ETFs could lead to a similar 60% rise in the coming months. Ether has already shown a strong reaction, rising approximately 5.5% in the past 24 hours, reaching a price of $3,878.84 before pulling back slightly.
Ethereum, with a market capitalisation of around $454bn, is well positioned for further institutional adoption, thanks to its dynamic performance and environmentally friendly design. The platform remains central to the transformation of financial markets, offering a robust and scalable infrastructure for decentralised applications.
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