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The US Securities and Exchange Commission (SEC) approved
applications from major exchanges like Nasdaq, CBOE, and NYSE to list
exchange-traded funds tied to the price of ether on Thursday. This approval potentially opens the door for
these products to begin trading later this year.
Nine issuers, including VanEck, ARK
Investments/21Shares, and BlackRock, applied to launch ETFs tied to ether
following the SEC’s approval of Bitcoin ETFs in January. Despite the much-anticipated positive feedback, ether ETF issuers must obtain approval for ETF registration statements detailing investor disclosures before the products can start trading. Last-Minute Changes
Market participants were prepared for a negative
outcome, especially considering the lack of engagement from the SEC on the
applications, Reuters reported. However, in an unexpected turn of events, SEC
officials on Monday requested the exchanges to make quick adjustments to the
filings, leading to a rush within the industry to meet the new requirements in
a short timeframe.
In the run-up to the decision-making deadline, the SEC’s Chair Gary Gensler, known for his skepticism toward cryptocurrencies, declined to comment when reporters asked about the ether ETFs. The SEC spokesperson also stated that the agency would not provide
further comments on the matter.
However, the SEC has no set timeframe for deciding on these statements, leaving industry participants uncertain about when
trading could commence. Optimism about the SEC’s approval of Ether ETF pushed the price of the
second-largest cryptocurrency by 25% in the past week. Notably, the asset management firm plans to avoid staking
and derivatives to address regulatory concerns. Similar activities by the SEC
preceded the approval of Bitcoin ETFs in January, which became
a record-breaking product launch.
The US Securities and Exchange Commission (SEC) approved
applications from major exchanges like Nasdaq, CBOE, and NYSE to list
exchange-traded funds tied to the price of ether on Thursday. This approval potentially opens the door for
these products to begin trading later this year.
Nine issuers, including VanEck, ARK
Investments/21Shares, and BlackRock, applied to launch ETFs tied to ether
following the SEC’s approval of Bitcoin ETFs in January. Despite the much-anticipated positive feedback, ether ETF issuers must obtain approval for ETF registration statements detailing investor disclosures before the products can start trading. Last-Minute Changes
Market participants were prepared for a negative
outcome, especially considering the lack of engagement from the SEC on the
applications, Reuters reported. However, in an unexpected turn of events, SEC
officials on Monday requested the exchanges to make quick adjustments to the
filings, leading to a rush within the industry to meet the new requirements in
a short timeframe.
In the run-up to the decision-making deadline, the SEC’s Chair Gary Gensler, known for his skepticism toward cryptocurrencies, declined to comment when reporters asked about the ether ETFs. The SEC spokesperson also stated that the agency would not provide
further comments on the matter.
However, the SEC has no set timeframe for deciding on these statements, leaving industry participants uncertain about when
trading could commence. Optimism about the SEC’s approval of Ether ETF pushed the price of the
second-largest cryptocurrency by 25% in the past week. Notably, the asset management firm plans to avoid staking
and derivatives to address regulatory concerns. Similar activities by the SEC
preceded the approval of Bitcoin ETFs in January, which became
a record-breaking product launch.
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