Ethereum

2024

James

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>The correlation between CME Ethereum futures and certain ETH trading platforms is the main reason for the SEC’s approval of ETH ETFs.</li> 
 <li>The crypto products will most likely see the launch as early as June.</li> 
</ul> 
Only hours ago, the US SEC decided to&nbsp;<a href="https://www.reuters.com/technology/us-sec-approves-exchange-applications-list-spot-ether-etfs-2024-05-23/" target="_blank" rel="nofollow noopener">approve the listing</a> of Ethereum ETFs. The decision comes following multiple optimistic predictions for analysts and investors in the past days. 
The SEC reportedly signed off on a proposal by exchanges including Cboe Global Markets, NYSE, and Nasdaq to list products tied to ETH. 
The&nbsp;<a href="https://www.sec.gov/files/tm/lk87adfs99.pdf" target="_blank" rel="nofollow noopener">official filing</a> has been published by the SEC, and, according to the notes, the main reason for the listing approval is the correlation between CME Ethereum futures and certain Ethereum trading platforms. 
Most of the SEC’s notes offer data evidence of high correlation, highlighting that the monitoring and sharing agreements of CME and others can help prevent fraud and manipulation. 
<figure id="attachment_43218" aria-describedby="caption-attachment-43218" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/05/f710124b-33ff-4f56-a325-3f7a9810ae19.jpg"><img decoding="async" class="wp-image-43218 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/05/f710124b-33ff-4f56-a325-3f7a9810ae19.jpg" alt="SEC official filing" width="686" height="553" title="Main Reason For SEC's Approval Of Ethereum ETFs With Potential Launch In June 5" srcset="https://crypto.ro/en/wp-content/uploads/2024/05/f710124b-33ff-4f56-a325-3f7a9810ae19.jpg 686w, https://crypto.ro/en/wp-content/uploads/2024/05/f710124b-33ff-4f56-a325-3f7a9810ae19-300x242.jpg 300w" sizes="(max-width: 686px) 100vw, 686px"></a>
 <figcaption id="caption-attachment-43218" class="wp-caption-text">
 SEC official filing
 </figcaption>
</figure> 
According to the official notes of the regulator, after careful review, the Commission found that the proposals are consistent with the Exchange Act, rules, and regulations. 
The US SEC also noted that the Commission finds that the Proposals are consistent with the section of the Exchange Act that requires that the Exchange’s rules be designed to “prevent fraudulent and manipulative acts and practices” and, “in general, to protect investors and the public interest.” 
<h2 id="when-will-the-ethereum-etfs-be-launched">When will the Ethereum ETFs be launched?</h2> 
Bloomberg’s James Seyffart shared a post via X, revealing the approval of the Ethereum ETFs by the SEC. He said that this move does not mean that the crypto products will begin trading right away. 
He highlighted that this was just the 19b-4 approval and we still need to see the approval on the S-1 documents which will most likely take time. 
He continued and that this is expected to take a couple of weeks, but it could also take even longer. 
<blockquote class="twitter-tweet"> 
 TO BE CLEAR: This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be an approval on the S-1 documents which is going to take time. We’re expecting it to take a couple weeks but could take longer. Should know more within a week or so! 
 — James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1793752733763445043?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 23, 2024</a>
</blockquote> 
He <a href="https://x.com/JSeyff/status/1793756101881876524" rel="nofollow" target="_blank">said</a> that the process typically takes months, but he and Bloomberg’s Eric Blachunas believe that in this case, the process will most likely be accelerated. He mentioned that Bitcoin ETFs took at least 90 days. 
Balchunas said that the important part is now over and all that is left is just logistics. He predicts that mid-June could be a potential time when the SEC delivers the final decision on S-1 forms. 
<blockquote class="twitter-tweet"> 
 The imp part is over. Now just logistics. My guess is there’s only one round of comments on the S-1s. And during btc one round took two weeks ish. So I this mid June is certainly poss. Just a guess tho. We will see. 
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1793758232634126816?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 23, 2024</a>
</blockquote> 
Ahead of the Ethereum ETFs’ approval by the SEC, Galaxy Digital revealed a report, this Tuesday, also mentioned by <a href="https://www.theblock.co/post/296478/spot-ethereum-etfs-if-approved-will-likely-begin-trading-in-july-or-august-galaxy-digital-report" rel="nofollow noopener" target="_blank">The Block</a>, which predicted that the crypto products would be listed on exchanges in July or August.

Main Reason For SEC’s Approval Of Ethereum ETFs With Potential Launch In June

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