Ethereum

Spot

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/sec-approves-spot-ethereum-etf-2" data-wpel-link="internal" rel="noopener noreferrer nofollow">SEC Approves Spot Ethereum ETF</a><br></p>
<p style="text-align: justify">The U.S. Securities and Exchange Commission (SEC) has officially approved a spot Ethereum ETF, marking a significant milestone for the cryptocurrency market. The approval covers 19B-4 forms for eight applications, paving the way for these ETFs to eventually trade on <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">stock markets</a>. While the S-1 forms still require the SEC’s green light for trading to commence, the initial approval is a major step forward and has been positively received by investors.</p>
<h2 id="sec-s-approval-details">SEC’s Approval Details</h2>
<p style="text-align: justify">Previously, the SEC had expressed uncertainty regarding Ether’s status as a security. This stance was articulated in Wells Notices sent to various cryptocurrency companies. However, in a surprising reversal, the SEC has now granted initial approvals to all eight ETF applications, likely influenced by political considerations. The final S-1 form approvals are expected in the coming weeks.</p>
<h2 id="why-the-change-in-stance">Why the Change in Stance?</h2>
<p style="text-align: justify">The SEC’s approval as Commodity-Based Trust Shares officially classifies the ETF as a commodity. The approval also acknowledges a 99% correlation between CME and spot ETH pricing. Each approved proposal aligns with existing guidelines for other Exchange-Traded Products (ETPs), ensuring transparency in pricing, asset portfolios, and oversight procedures.</p>
<h2 id="key-insights">Key Insights</h2>
<p style="text-align: justify">– The SEC found the proposals consistent with the Exchange Act and rules for a national securities exchange.<br> – Approval was given as Commodity-Based Trust Shares, marking the ETF officially as a commodity.<br> – A 99% correlation between CME and spot ETH pricing was accepted.<br> – Each proposal aligns with other ETP guidelines, including pricing information, portfolio transparency, and oversight procedures.<br> – Commenters noted the need for approval due to the existing trade of CME ether futures ETFs and the lack of difference between spot bitcoin and ether ETPs.</p>
<p style="text-align: justify">The SEC justified its decision by pointing to strong investor demand for ETH ETFs, environmental benefits of Ethereum’s proof-of-stake mechanism, the potential for Trusts to stake Ether, and competitive disadvantages for U.S. <a href="https://newslinker.co" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">innovation</a> and investors if spot Ether ETPs were not approved. These factors led the Commission to conclude that the proposals meet the Exchange Act requirements, specifically Section 6(b)(5).</p>
<p style="text-align: justify">This approval, signed by J. Matthew DeLesDernier of the SEC, represents a historic moment in the ongoing evolution of the cryptocurrency market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/sec-approves-spot-ethereum-etf-2" data-wpel-link="internal" rel="noopener noreferrer nofollow">SEC Approves Spot Ethereum ETF</a></h5>

SEC Approves Spot Ethereum ETF

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