The cryptocurrency community is rejoicing – the US Securities and Exchange Commission (SEC) has finally approved the launch of spot Ethereum ETFs. However, the start of trading may have to wait a long time.
Due to some bureaucratic nuances, trading of exchange-traded funds (ETFs) in ETH will, at best, begin in a few weeks. At worst, in five months. About it stated Bloomberg analyst James Seyffarth.
When will spot ETF trading begin on Ethereum?
The SEC has approved eight Form 19b-4 filings for Ethereum spot ETFs. BlackRock, Grayscale, Fidelity, VanEck, Franklin Templeton, Bitwise, ARK Invest/21Shares and Invesco/Galaxy received the green light.
It is noteworthy that the decision to approve accepted SEC Division of Trade and Markets. Chairman Gary Gensler and the rest of the department voted against it.
However, trading in the instrument cannot yet be started. This requires the regulator to sign registration statements on Form S-1. This form contains important information such as a description of the business and management structure, financial statements and risks. Form S-1 approval provides the issuer with legal protection.
Approval of registration applications could take place “in a couple of weeks,” Seyffart said. However, the process usually takes up to five months, so you may have to wait longer.
Another Bloomberg ETF analyst is Eric Balchunas. awaitsthat the SEC will review and approve Forms S-1 by mid-June. In his opinion, issuers will have one round of comments on the amendments ahead. The Commission did the same in the case of Bitcoin spot ETFs (BTC). Then the whole process took about two weeks.
ETH is not a security
Many in the crypto industry called the approval of spot Ethereum ETFs a historic moment. According to representatives Bitwisesuch a move will attract more attention to the second largest cryptocurrency by capitalization, which ETH definitely deserves.
VanEck Head of Digital Asset Research Matthew Siegel emphasized that the approval of the tool will have a positive impact on the crypto market.
However, the main victory, of course, is that Ethereum is not a security after all. Representatives of Consensys, the MetaMask developer company, noted, that the SEC actually recognized ETH as a commodity. But it is too early to judge the final status of the cryptocurrency. It will become clearer after the regulator approves the S-1 forms.
Consensys previously filed a lawsuit against the SEC. She accused the department of exceeding its powers. In particular, the reason for the lawsuit was checks at the Ethereum Foundation.
For months, many have speculated that the SEC wanted to recognize ETH as a security in order to reject all applications to launch Ethereum spot ETFs.
Source: Cryptocurrency
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