SEC moves forward with Ethereum ETF

Celebrated as a landmark decision by the US Securities and Exchange Commission, Ethereum and other crypto ETFs are now on the cards

SEC’s decision comes less than six months after the SEC approved a Bitcoin ETF, paving the way for broader adoption of cryptocurrencies in the economy, and amid a strong pushback from the regulator in the first place.

Yet, mindful of the sudden empowerment of crypto finance as the SEC has been, it has shown remarkable leniency regarding ETF products in general. A Bitcoin ETF was approved at the end of 2023, and these assets have already proven to be a significant boost to the industry and finance, with more than $12 billion locked in such vessels.

Now, the SEC has decided to expand the scope of cryptocurrency ETFs, giving its formal go-ahead, and defying criticism that the regulator was trying to bog down the industry in red tape or hinder its growth.

Yet, on the matter of crypto assets vs crypto commodities, the SEC’s mind has remained mostly unchanged, despite a last-hour passage of a bill that is looking to put the Commodity Futures Trading Commission in charge of the industry and pass sweeping changes to the way crypto assets are viewed.

Regardless, SEC’s latest regulatory move focuses solely on the less divisive topic of ETFs, with an Ethereum option now arriving. However, investors ought to be cautious as the SEC has only approved an order for ETFs, and not the actual ETFs.

Although the principle may now be implemented, the SEC would also need to look into individual ETFs before those could be launched. There is no guarantee that the SEC’s stubbornness in the matter of regulating crypto won’t show up once actual bids are placed.

Another thing to note is that Ethereum ETFs may be approved, but this approval does not spill over to other projects such as digital assets on the Ethereum platform. Plus, investors are probably aware that there are structural differences that make Ethereum ETFs slightly less exciting than their Bitcoin counterparts, which means that this particular asset is set to grow slowly, when and if the SEC approves specific Ethereum ETFs.

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Written by Barney


Barney is co-founder of When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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