The Securities and Exchange Commission (SEC) has informed spot Ethereum ETF issuers that they can begin trading on July 23rd. Bloomberg analyst Eric Balchunas has stated that the SEC requires these issuers to submit their final S-1 forms this Wednesday and apply for effectiveness after the market closes next Monday.
This timeline would enable trading to commence on Tuesday, July 23rd. This development signifies a significant step forward in the regulatory landscape for cryptocurrency-related investment products in the United States.
This information was initially reported by Bloomberg Intelligence senior ETF analyst Eric Balchunas on social media.
Issuers have submitted amended S-1 documents, but details like management fees remain undisclosed, with only a few firms, such as VanEck and Invesco Galaxy, publicly announcing their charges.
Anticipation is high for the launch of spot ether ETFs, with crypto exchange Gemini predicting inflows of up to $5 billion within the first six months, while Steno Research forecasts up to $20 billion in the first year.
The news spurred a significant rise in ether’s price, reaching a 7.3% increase on Monday, outperforming bitcoin’s 6% gain. The broader market index, CoinDesk 20, also climbed 5.6% on the same day.
SEC Ethereum ETF Approval Plot Twist
The Securities and Exchange Commission’s (SEC) recent declaration that Ethereum is a commodity has created a significant challenge for its ongoing legal battles against certain crypto companies. This classification aligns with the recent approval of the first Ethereum exchange-traded fund (ETF).
The SEC’s classification of Ethereum as a commodity directly contradicts its previous arguments that cryptocurrencies operating within an “ecosystem” should be classified as securities. Furthermore, this inconsistency has raised serious questions about the SEC’s regulatory approach to the cryptocurrency market.
The crypto community’s decision to classify Ethereum as a commodity has sparked significant debate.
This skepticism is further amplified by the fact that other cryptocurrencies, such as Solana and Cardano, are currently classified as securities when traded on platforms like Coinbase. The SEC’s conflicting classifications highlight the ongoing uncertainty and complexity surrounding the regulation of the rapidly evolving cryptocurrency market.
