The U.S. Securities and Exchange Commission (SEC) could approve exchange traded funds (ETFs) tied to the spot price of Ether as soon as July 4 2024, new reports indicate.
Just over a month ago, the SEC granted accelerated approval to 3 stock exchanges to list and trade shares of Ether ETFs, paving the way for eight individual applications to be approved.
MILESTONE | United States Securities Regulator Approves Listing of #Ether ETFs on Major Stock Exchanges
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… pic.twitter.com/NVgmQCshL9
— BitKE (@BitcoinKE) May 24, 2024
The eight asset managers, including:
BlackRock (BLK.N)
VanEck
Franklin Templeton (BEN.N), and
Grayscale Investments
are now in the final stages of the approval process, says Reuters, with sources indicating that it was ‘down to the finishing touches’ and that approval is ‘probably not more than a week or two away.’
“Executives at two firms, who requested anonymity due to the confidential nature of the discussions, said the process of amending the offering documents has progressed to resolving only ‘minor’ issues. Those documents must be approved before the ETFs can be launched.”
– Reuters
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.
EXPLAINER: Crypto ETFs are Here, But What are They Really? https://t.co/Btwtvrn20t #BitcoinETF
— BitKE (@BitcoinKE) October 31, 2021
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.
In the latest amendments to their applications, issuers aiming to launch spot Ether ETFs have clarified to the United States Securities and Exchange Commission that they will not stake $ETH held by the funds. Staking Ether involves depositing $ETH to help secure the Ethereum blockchain — and earning yield in exchange.
REGULATION | Spot Ether ETF Applicants Commit to Not Staking $ETH Ahead of SEC Decision
“Neither the trust, nor the sponsor, nor the custodian, nor any other person associated with the trust will, directly or indirectly, engage in action where any portion of the trust’s ETH… pic.twitter.com/IhaDE04Pf7
— BitKE (@BitcoinKE) May 23, 2024
ETFs came to the fore in January 2024 when the United States Securities and Exchange Commission (SEC) approved 11 BTC products. These have nearly $38 billion in assets, as of now, although the holdings of Grayscale Bitcoin Trust – which converted its $27 billion bitcoin trust into an ETF at the same time – dipped to $17.8 billion.
MILESTONE | ‘We Do not Approve Nor Endorse Bitcoin,’ Says United States SEC as it Approves 11 Spot #Bitcoin ETFs
This development represents a historic milestone in the integration of Bitcoin into traditional financial markets.
Below are the 11 approved products.… pic.twitter.com/Zn41cG9Ji0
— BitKE (@BitcoinKE) January 11, 2024
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