The United States Securities and Exchange Commission (SEC) has officially approved the much-anticipated spot Ethereum exchange-traded fund (ETF). The announcement comes only three days after the crypto industry saw the SEC begin taking steps to approve the first wave of Ethereum ETF products.
SEC Approves Spot Ethereum ETF
In recent months, several notable financial companies have applied for a spot Ethereum ETF. However, the regulatory watchdog seemingly turned a deaf ear. This caused ETF experts like Eric Balchunas and James Seyffart to lower the chances that the SEC would endorse the investment vehicle. The odds were further depreciated as the SEC’s chairman, Gary Gensler, termed Ether (ETH) as a security.
On May 20th, things began looking up as the SEC commenced communication with several financial companies that filed for the product. These firms were required to make amends to their 19b-4 forms.
With the latest approval, eight companies can now issue the spot Ethereum financial product to America-based investors while offering them the benefits common to the traditional financial system. These firms are BlackRock, Fidelity, Grayscale, VanEck, Invesco Galaxy, Franklin Templeton, and Ark.
Interestingly, ETH’s market performance has recently soared in response to the news about the ETF product. At the time of writing, the asset’s trading volume has jumped by over 74% in the last 24 hours to $44.8 billion. The crypto’s price currently sits at $3,800, representing a 30% surge over the past week.
Optimism remains high that the newly endorsed product will likely see a surge in engagement like its Bitcoin-based counterpart. Following its approval in early January, investors injected billions of dollars into the spot Bitcoin ETF product.
Solana ETF Next?
With spot Ethereum ETF off the deck, crypto proponents eye a Solana ETF as the next crypto to see a green light from the SEC.
Referencing Seyffart’s comments, CoinTab reported earlier today that Solana ETFs will see higher demands than other crypto assets. He added that the SOL-backed ETF product will likely take longer to be endorsed by the SEC.
Elendu Benedict | July 1, 2024
