In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) gave a green signal to applications from major stock exchanges, including Nasdaq, CBOE, and NYSE, to list eight spot ether exchange-traded funds (ETFs). Importantly, the approval signifies a substantial change in the regulatory landscape for cryptos.
Ether is the native cryptocurrency token used by the Ethereum (ETH-USD) blockchain platform.
This decision follows the SEC’s approval of Bitcoin (BTC) ETFs in January after years of rejections for similar products. It should be noted that Bitcoin ETFs have been a hit, attracting over $30 billion in investor assets.
Hold Your Horses; Approval is Not Enough
The SEC’s green light for Ether ETFs does not mean immediate trading. Each ETF applicant is still required to gain the SEC’s approval individually. This process involves closely reviewing their registration statements, particularly regarding investor disclosures. The SEC is anticipated to take its time with these reviews, potentially delaying the launch of Ether ETFs.
About 10 asset managers, including industry giants like BlackRock (BLK), Fidelity Investments, Invesco (IVZ), and Ark Invest, have filed applications to launch the first wave of Ether ETFs.
Is It Good to Invest in Ethereum Now?
The SEC’s approval is a positive development that should boost Ethereum’s value. The move will provide retail investors with easier access to the second-largest cryptocurrency without the necessity of direct ownership.
ETH has already experienced significant growth of about 107% in one year and nearly 29% in the past three months. Despite this surge, Ethereum is a Buy, according to TipRanks’ Summary of Technical Indicators.
