U.S. Securities Regulator Approves Spot Ether ETFs in Landmark Decision

The SEC has issued an omnibus approval for ETH ETF applicants.

Just over four months after Bitcoin ETFs began trading in the U.S., the Securities and Exchange Commission (SEC) has greenlit trading of exchange-traded funds backed by spot Ether.

The agency issued an “order granting accelerated approval of proposed rule changes, as modified by amendments thereto, to list and trade shares of ether-based exchange-traded products.”

It’s been a volatile day for ETH, which has soared nearly 30% in the past week in anticipation of today’s landmark decision. The second-largest cryptocurrency traded as high as $3,960 earlier today before briefly dipping under $3,600. ETH is currently changing hands for $3,720.

Ethereum ETFs will provide ETH exposure to financial institutions that want to use traditional financial rails and avoid using crypto exchanges, custody, and private keys.

Ethereum bulls will hope that these new ETFs see comparable levels of interest from TradFi investors who have plowed more than $13 billion into Bitcoin ETFs to date.

Institutions that have filed an ETH ETF application include VanEck, ArkInvest/21Shares, Grayscale, BlackRock, Hashdex, Invesco/Galaxy and Fidelity.

Before Ethereum ETFs start trading, the SEC has to approve two forms filed by applicants, 19b-4 and S-1.

Today’s decision comes after a whirlwind week in which analysts’ approval odds swung from 25% to 75%. The shift left exchanges and issuers scrambling to update filings to meet the agency’s demands.