On May 23, 2024, the U.S. Securities and Exchange Commission (SEC) officially gave the green light to spot Ethereum-ETFs.
The regulatory body has approved Forms 19b-4 filed by organizations looking to introduce spot Ethereum-ETFs. These organizations include BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton, The Block reported.
The full list of applications for these exchange-traded funds was previously disclosed by Bloomberg Intelligence analyst James Seyffarth.
Here's a list of all entrants in the spot #Ethereum ETF race. The 'ETHness Stakes'
— James Seyffart (@JSeyff) May 20, 2024
(h/t to @LongTailFinance for the name) pic.twitter.com/ZBQVJ6ppKp
He also emphasized that this approval does not mean an immediate start of trading for the Ethereum-ETF.
"This relates solely to the 19b-4 approval. We also need to get approval to issue S-1 documents, which will take time. We expect this process to take a few weeks, although it may take longer. Further information is expected in about a week."
The value of #Ethereum (ETH) showed minimal fluctuations in response to the announcement.
Notably, the SEC authorized spot #bitcoin-ETFs on January 10, 2024. These products hit the market the next day.
By Jan. 11, trading volume for these ETFs reached $4.66 billion, with net daily inflows of $628 million, according to SoSo Value.
Previously, Bloomberg Intelligence analyst Eric Balchunas predicted that the market share of Ethereum-based spot ETFs would be roughly 10% of the performance of bitcoin funds after their launch in Hong Kong. This forecast gives an indication of the potential performance of this asset category in the US.
