SEC Grants Approval For Ethereum ETF But Hasn’t Cleared Them For Trading Yet

Finally, the United States Securities and Exchange Commission (SEC) has approved the first batch of Ethereum ETF, making them cross a huge milestone of being available in the US as an SEC-approved key regulatory filing in the first place.

Many speculations were going on as to will the SEC give Ethereum ETF approval or not which has finally come to an end. 

Honestly, a few days before the Ether ETF approval, it seemed impossible to have one. 

“A week ago, I would’ve said you were a little crazy to think that these ETFs were going to get SEC approval”, said James Seyffart, ETF analyst at Bloomberg Intelligence.

Future Of Ether ETF After Getting An Approval 

After Ethereum ETF SEC Approval, Ether ETF will be able to expand its horizons, making it easy for investors to have direct access to it without having the need to purchase and store the digital asset itself. 

However, this approval does not mean that Ethereum ETF can begin trading from tomorrow. As per James Seyffart’s post on Twitter, the approval does not mean that Ether ETF can begin from tomorrow. After getting a 19b-4 approval, it is important for Ether ETF to get approval on the S-1 documents which would take at least a couple of days. 

The approval of 19b-4 filing seems like a good sign indicating that regulators are willing to allow the investors to come up with spot Ether ETF, however, still, we are not sure as to whether it will get the S-1 approval or not. 

Ethereum – A Security Or A Commodity? 

After being approved and getting listed on the DTCC, the next debate is whether Ethereum should be treated as a security or a commodity. The regulators appear to be working towards making Ether ETF a commodity. 

The House recently approved H.R. 4763, the Financial Innovation and Technology Act 21 (FIT 21), which aims to provide a regulatory framework for digital assets. The White House passed the bill claiming that they did not like the legislation as it was but they wanted to work with Congress to find a solution and would not veto it so it could reach President Biden’s desk to be signed into law. This is in contrast to another Bitcoin and crypto-related bill that was voted on in the House and Senate earlier this month.

If FIT 21 passes the Senate and gets the signature of President Biden, Ethereum ETF will be categorized as a commodity. 

Conclusion- 

After getting the most awaited SEC approval, now Ethereum ETF has two things on its list-

1. Getting approval on the S-1 documents
2. Finding answers to whether it will be a security or a commodity in the near future. 

What the future holds, will be something that will definitely shape the future of the crypto market as a whole! 

That’s it from our side! 

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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.