Spot Ether ETFs are now officially legal in the US: Law Decoded

May 27, 2024 Coin Telegraph

Spot Ether ETFs might be weeks or months away from debuting on exchanges, as the ETF filers have yet to receive their S-1 SEC registration.

In a second landmark decision this year, the United States Securities and Exchange Commission has given the regulatory green light to spot Ether exchange-traded funds (ETFs) in the country.

The SEC approved the 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise, approving the rule changes allowing spot Ether (ETH) ETFs to be listed and traded on their respective exchanges.

Unlike the spot Bitcoin (BTC) ETFs approved via voting by a five-member committee including SEC Chair Gary Gensler, spot Ether ETFs were approved by the SEC’s Trading and Markets Division.

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Ethereum ETFs launch next month ‘certainly possible’ — Analyst

May 24, 2024 Coin Telegraph

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The launch date will largely depend on how quickly approved applicants amend their S-1 registration statements and how many rounds of feedback they receive from the SEC.

The newly-approved spot Ether (ETH) exchange-traded funds could launch as early as mid-June — if the United States securities regulator follows a similar timeline to its spot Bitcoin ETF process.

Spot Ether ETFs got the green light for their 19b-4 filings today, allowing the funds to be listed on their respective exchanges. However, applicants will first need approved S-1 registration statements to begin trading.

Bloomberg ETF analyst James Seyffart has been saying S-1 approvals could come in a “couple of weeks,” but also noted that they “could take longer” as the process typically takes up to five months.

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SEC’s ETF decision means ETH and ’a lot’ of other tokens are not securities

May 24, 2024 Coin Telegraph

19b-4

That doesn't mean the securities regulator can't still pursue action against actors in the staking domain, industry analysts and lawyers warn.

The approval of spot Ether (ETH) exchange-traded funds is “implicit recognition” from the United States Securities and Exchange Commission that Ether is not a security, according to industry pundits.

One even suggests this could extend to other tokens as well.

"These are commodities-based trust shares, so the SEC, by approving these, is explicitly saying they’re not going to go after Ether as a security,” noted Bloomberg ETF analyst James Seyffart in a discussion with Ryan Sean Adams on the Bankless podcast.

Invesco Galaxy