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SEC Approves 19b-4 Forms of First Batch Ethereum ETFs

Regulation | May 23, 2024

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Regulatory Milestone:  SEC Approves the first batch of 19b-4 Forms of Ethereum ETFs

On May 23, 2024, the U.S. Securities and Exchange Commission (SEC) cleared a major hurdle in approving 8 Ethereum Exchange-Traded Funds (ETFs), which would allow investors to gain exposure to Ethereum through a regulated financial product.

The ETPs include:

  1. Grayscale Ethereum Trust
  2. Bitwise Ethereum ETF
  3. iShares Ethereum Trust
  4. VanEck Ethereum Trust
  5. ARK 21Shares Ethereum ETF
  6. Invesco Galaxy Ethereum ETF
  7. Fidelity Ethereum Fund
  8. Franklin Ethereum ETF

As reported by Reuters, although the applications for a rule change to list new products has been approved by the SEC, still need the SEC's approval of ETF registration statement details and S-1 filings related to investor disclosures before they are able to begin trading. Unlike the exchange filings, there is no set time frame in which the SEC needs to decide on those statements. Two sources familiar with the process said that "...many issuers are ready to launch but the corporate finance division of the SEC has indicated that it is likely to request changes and updates in coming days and weeks."

The SECs order basically states that they are comfortable that the proposed ETPs can legally and competently operate in a regulated environment while protecting investors and the integrity of the marketplace.

See:  Ether Jumps on Increased Odds of Spot ETF Approval

This approval of these ETFs are expected to boost the credibility and adoption of cryptocurrencies while providing a safer, more convenient investment avenue for both institutional and retail investors. Ethereum, currently trading around $3,700, could see substantial price increases. Analysts suggest that the approval could nearly double Ethereum's price​.  Grayscale Investments, one of the key players, plans to convert its Ethereum Trust into an ETF, which currently holds 2.5% of all circulating Ether, amounting to $5 billion in assets​.

Outlook

With the U.S. presidential election on the horizon, cryptocurrency regulation is becoming a key issue, which might influence further positive regulatory changes.


NCFA Jan 2018 resize - SEC Approves 19b-4 Forms of First Batch Ethereum ETFsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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