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SEC approves Ethereum ETFs, aligning ETH closer to commodity in industry win
Ethereum's commodity classification gains ground with SEC's landmark ETF approval, boosting investor interest.
Liam 'Akiba' WrightMay. 23, 2024 at 10:09 pm UTC
The US Securities and Exchange Commission (SEC) has approved the first spot Ethereum exchange-traded funds (ETFs), marking a significant milestone for the crypto industry. The decision, announced today, allows asset managers such as Grayscale, Fidelity, and Bitwise to launch ETFs that directly track the price of Ethereum (ETH).
Ethereum rose 2% on the news and was trading at $3,900 as of press time, based on CryptoSlate data.
The approval follows a rigorous application process and extensive market analysis. Grayscale’s Chief Legal Officer, Craig Salm, previously highlighted that the SEC had already addressed key issues during the approval of spot Bitcoin ETFs, which are applicable to Ethereum ETFs as well. These issues include creation and redemption processes, cash versus in-kind transactions, and custody concerns. Salm emphasized that the SEC’s prior engagement with Bitcoin ETF issuers laid the groundwork for Ethereum ETFs, noting the strong correlation between ETH futures and spot prices as a compelling factor for approval.
The SEC’s decision comes after a period of uncertainty and skepticism among market analysts. Bloomberg analyst Eric Balchunas had previously estimated a 25% chance of approval by May 23, citing the SEC’s lack of engagement compared to the Bitcoin ETF approval process. However, the approval of spot Bitcoin ETFs earlier this year, Hong Kong’s ETH ETF approval, and recent crypto wins in Congress had raised hopes among crypto proponents despite the SEC’s historically cautious stance under Gary Gensler’s leadership.
The approval process included a public comment period, during which the SEC sought feedback on various aspects of the proposed ETFs, including custodianship of funds, creation, and redemption models, and sponsor fees. This phase mirrored the approach taken with spot Bitcoin ETF applications, encouraging feedback from US citizens and organizations.
The approval of spot Ethereum ETFs is expected to have a significant impact on the digital assets market. Hong Fang, president of crypto exchange OKX, noted that while Ethereum’s price has risen this year, it has lagged behind Bitcoin’s gains, a disparity likely influenced by market anticipation of the SEC’s decision. The approval is anticipated to boost investor confidence and increase market liquidity.
Several issuers filed applications to list their ETF on the NYSE Arca exchange, with Coinbase Custody serving as the custodian. Bitwise’s analysis demonstrated a strong correlation between the ETH spot market and the CME ETH futures market, a critical factor in meeting SEC requirements to monitor potential market manipulation.
Despite the positive outcome, some industry insiders had expressed concerns about the SEC’s approach. Participants in recent meetings with the SEC described the talks as one-sided, with agency staff withholding substantive comments on the proposals. This contrasted with the detailed discussions that preceded the SEC’s approval of spot Bitcoin ETFs.
The approval also comes amid ongoing regulatory scrutiny of Ethereum’s classification as either a security or a commodity. Reports suggest that the SEC is investigating Ethereum’s regulatory classification, which added uncertainty to the approval prospects. However, today’s decision indicates a favorable stance towards Ethereum-based financial products and a potential indication that Ethereum can be considered a commodity.
The approval is a landmark event for the crypto industry, reflecting the growing interest in crypto-asset financial products among traditional investment firms. As the market reacts to this development, stakeholders will closely monitor the performance and impact of these newly approved ETFs.
Ethereum Market Data
At the time of press 10:20 pm UTC on May. 23, 2024, Ethereum is ranked #2 by market cap and the price is up 2.97% over the past 24 hours. Ethereum has a market capitalization of $461.12 billion with a 24-hour trading volume of $41.29 billion. Learn more about Ethereum ›
Crypto Market Summary
At the time of press 10:20 pm UTC on May. 23, 2024, the total crypto market is valued at at $2.53 trillion with a 24-hour volume of $132.2 billion. Bitcoin dominance is currently at 52.57%. Learn more about the crypto market ›
Mentioned in this article
Editor Editor
Assad Jafri
Editor & Reporter at CryptoSlate
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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I'm trusting the process.
BIEL train might be slowed down but can't be stopped.
While you stand aside and wait, accumulate.
While you stand aside and wait, accumulate.
I will trust the process while I sit aside and wait.
BIEL Train Is Rerouted, But Has Not Yet Stopped.
In It To Win It.
Patiently awaiting fins. Expecting the best.
Expecting a home run fins.
Lwt's go RNVA!!!!!
I decree and declare that the we get a nice run after the filings!
No News Means Good News...JMHO.
FOMO to kick in very soon!
That is it!
A complaint about what?
HOPEFULLY BY NEXT WEEKEND. JMHO.
Hopefully we will see the 10K tomorrow with an ath revenue report.
Greetings my fellow Bielionaires!
We are Bielion Strong...Be encouraged!
You are absolutely correct. I have been here since 2017 and nothing to brag about.
Things may look good on paper, but let's hold all applause for now until we begin to see investors value.
The jury is still out.
Past performance is not indicative of future results.
I've been a part of this community for more than six years now, and we've mostly traded on 0.000001 and 0.0001. There were a few instances when we touched 0.0002, but it was not a common occurrence. During this time, we experienced multiple RS, which made things a bit challenging. If this ticker were to turn around, it should have been during the CV19 pandemic. But let's hope for the best and keep our fingers crossed. Good luck to all!
I'm sticking to the 10th to prove that post wrong.
Ok, 29 daze will put us to April 10th. That's not very far away. I will be here to remind you about this ticker.
Good luck to you and us.
It's much deeper than that...Greed!
That's the problem....please do a research on Madoff and you will get a better picture.
Having invested in this ticker for over 6 years and lost a few thousands of dollars, the release of the 10K will not have any impact on investors value. The CEO is not serious about investors. Just my humble opinion based on experience. I'm just hoping and praying to one day recoup my losses and run from this madness. Don't believe the hype.
After the so-called 10K is released, watch out for the can to be kicked further down the road. We have read that comment every time since being on this chat. Don't believe the hype! My opinion of course.
Can we start a petition to remove the CEO from office due to no confidence and inability to lead the company?
It might have been a fake out.
The analysts are trying to figure that out. I'm sure we will hear something about that soon.
I heard when they start to talk about crypto on the various news outlets is time to get out. Not sure how true is that. Does anyone know about that from previous experience?
Shiba Inu Burn Portal Just Went Live?! $1,000,000 Burn?
Don't quote me wrong, I want the company to succeed so I can recoup my lost investment and check out. However, it's my opinion that the 10K will come and have no meaningful impact on investors value. There's no reason why any serious or reputable medical company should be trading as we are.
My exit strategy is to sell all of my cryptos, except BTC at the top of the bull market in 2025. Start buying in the next bear market.
Who can explain why we are still in this mess after all the money the company has received from the government's CV19 assistance, operation profits, and investors money? Can we call a rose by another name?
I kept reading RNVA is an income producing company. But, what good is that when the income is not trickling down to investors? Nothing to show, nothing to brag about. My long term experience with this company makes me to believe we'll continue to be in this saga another year.
A possible Binance listing!??
With the exception of telling the truth about this ticker and CEO, I am not sure how anyone can be basher on this board. How low any baser wants RNVA to go? What's the benefit?
We have a call! We have a call!
LowFloatLopes predicts, LowFloatLopes will predict JasmyUSD may reach.25!
Hell yeah!