The United States Securities Exchange Commission granted accelerated approval to stock exchanges to list and trade shares of Ether ETFs late on May 23 2024 (American time).
According to local reports, the approval of listing on 3 exchanges:
- NYSE
- NASDAQ, and
- CBOE
will see 8 institutional ETF products potentially list their ETF products, but they need their individual applications approved.
“This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be an approval on the S-1 documents which is going to take time. We’re expecting it to take a couple weeks but could take longer. Should know more within a week or so!” Said James Seyffart, an ETFs analyst at Bloomberg.
The institutional products expected to list include the following:
- The converted Grayscale Ethereum Trust
- Bitwise Ethereum ETF
- iShares Ethereum Trust
- VanEck Ethereum Trust
- ARK/21 Shares Ethereum ETF
- Invesco Galaxy Ethereum ETF
- Fidelity Ethereum Fund
- Franklin Ethereum ETF
An exchange-traded fund (ETF) is one of the investment products that is traded on a stock exchange. It enables investors to purchase shares that mirror the price of an underlying asset which can range from gold and foreign currencies to cryptocurrencies and technology stocks.
A spot Ethereum ETF, similar to a Bitcoin ETF, would involve a fund manager handling the purchase and storage of ETH digital coins, allowing individuals to buy shares that reflect their value. This would provide investors with exposure to the second-largest cryptocurrency by market capitalization.
The move comes after the SEC greenlit eleven spot Bitcoin ETF proposals back in January 2024. Since then, these spot Bitcoin ETFs have garnered close to $13 billion in net inflows, reports indicate.
The approval was however not deemed likely until about a week ago with a contention over whether the $ETH token is a security or commodity thought to be a stumbling block.
But ahead of SEC’s decision deadline on May 23 2024, the exchanges clarified that they will not be supporting any staking of $ETH held by the ETFs.
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