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 <p class="paragraph">The United States Securities and Exchange Commission (SEC) recently approved several spot Ethereum (ETH) exchange-traded funds (ETFs), a move that experts believe signals Ether’s status as a non-security.&nbsp;</p>
 <p class="paragraph">This decision, made on May 23, 2024, involved approving 19b-4 applications from major financial institutions like VanEck, BlackRock (NYSE: BLK), Fidelity, and others, enabling them to issue spot Ether ETFs.</p>
 <p class="paragraph">&nbsp;However, these ETFs still require S-1 <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> from the SEC before they can officially launch.</p>
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 <h2 class="wp-block-heading" id="h-sec-s-<a rel=" dofollow title="approval" href="https://thebittimes.com/tag/approval.html" rel="noopener noreferrer nofollow">approval-and-its-implications"&gt;SEC’s <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> and its implications</h2>
 <p class="paragraph"><em>Bloomberg</em> ETF analyst J<em>ames Seyffart</em> discussed the significance of this <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> on the <em>Bankless podcast</em>. He noted that the SEC’s decision to approve these commodity-based trust shares implies that the regulator does not classify Ether as a <a rel="noopener noreferrer nofollow" title="security" href="https://thebittimes.com/tag/security.html">security</a>.&nbsp;</p>
 <p class="paragraph">Seyffart suggested that this recognition might extend to other cryptocurrencies, potentially classifying them as commodities as well.</p>
 <p class="paragraph">Digital asset lawyer <em>Justin Browder</em> echoed <em>Seyffart’s sentiment</em>. He asserted that if Ether ETFs receive S-1 <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a>, which is the final requirement for them to begin trading, it would definitively resolve the debate over Ether’s <a rel="noopener noreferrer nofollow" title="security" href="https://thebittimes.com/tag/security.html">security</a> status.&nbsp;</p>
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    <p lang="en" dir="ltr">If any of the ETH spot ETFs go effective on Form S-1, the debate is over: ETH is not a security.<br><br>There is no legal way for a fund whose assets consist (almost) entirely of securities to go effective on an S-1 (with one exception that doesn’t apply).</p>— Justin Browder (@jlb410) May 21, 2024
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  <p class="paragraph">&nbsp;“There is no legal way for a fund whose assets consist (almost) entirely of securities to go effective on an S-1 (with one exception that doesn’t apply). If any of the ETH spot ETFs go effective on Form S-1, the debate is over: ETH is not a security.”-Browder emphasized</p>
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 <h2 class="wp-block-heading" id="industry-reactions-and-future-expectations">Industry reactions and future expectations</h2>
 <p class="paragraph">The approval has sparked various reactions and speculations within the industry. Finance lawyer <em>Scott Johnsson</em> remarked that the SEC’s approval order did not explicitly confirm Ether’s non-security status, saying the issue was “completely sidestepped.”&nbsp;</p>
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    <p lang="en" dir="ltr">I have to imagine the SEC sidesteps as much as possible the security question/issue in a potential approval order… but the SEC SHOULD provide its reasoning (specifically, the distinction its making between ETH and the alleged crypto asset securities currently subject to… https://t.co/iKtYsj01Xz</p>— Scott Johnsson (@SGJohnsson) May 22, 2024
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 <p class="paragraph">Nonetheless, experts expect an official statement from the SEC and its commissioners for further clarity.</p>
 <p class="paragraph">Industry analysts predict a significant market impact from this approval.&nbsp;</p>
 <p class="paragraph"><em>Lennix Lai,</em> OKX’s global chief commercial officer, stated that the approval could lead to institutional investors pouring $500 million into these ETFs, marking it as an important milestone potentially even more significant than the approval of Bitcoin (BTC) ETFs.&nbsp;</p>
 <p class="paragraph">Lai believes this could ignite a new wave of institutional demand for Ethereum, given its tradeability within a traditional financial framework.</p>
 <h2 class="wp-block-heading" id="next-steps-for-approved-etfs">Next steps for approved ETFs</h2>
 <p class="paragraph">Despite the approval, all eight ETF issuers must await the SEC’s approval of their S-1 registration statements before launching their ETFs.</p>
 <p class="paragraph"><em>Bloomberg</em> ETF analyst <em>Eric Balchunas</em> predicts that S-1 <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a>s could be granted within a few weeks, though the process typically spans up to five months. The timeline remains uncertain, but a mid-June launch is considered possible by some analysts.</p>
 <p class="paragraph">As these developments unfold, the approval of spot Ether ETFs could significantly influence the cryptocurrency market, potentially triggering a substantial rally in the price of ETH.&nbsp;</p>
 <p class="paragraph">The SEC’s approval of spot Ether ETFs represents a pivotal moment for Ethereum and the broader cryptocurrency market.&nbsp;</p>
 <p class="paragraph">While it implicitly recognizes Ether as a non-security, further clarification from the SEC is anticipated.&nbsp;</p>
 <p class="paragraph">The market response and institutional investments following this approval will be closely watched as they may set a precedent for other cryptocurrencies and their regulatory classifications.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sec-s-ethereum-etf-approval-confirms-eth-is-not-a-security-experts-say-tbt89575.html">https://thebittimes.com/sec-s-ethereum-etf-approval-confirms-eth-is-not-a-security-experts-say-tbt89575.html</a></p>

SEC’s Ethereum ETF approval confirms ETH is not a security, experts say

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