- The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum ETF applications.
- This approval confirms Ethereum’s status as a commodity, as stated by Coinbase CLO Paul Grewal.
- The approved funds include Grayscale, Bitwise, iShares, VanEck, ARK/21 Shares, Invesco Galaxy, Fidelity, and Franklin Ethereum ETFs.
The SEC’s approval of spot Ethereum ETFs marks a significant milestone for Ethereum, solidifying its status as a commodity and paving the way for increased institutional investment.
Coinbase CLO: SEC Approval of Ethereum ETF Validates ETH as Commodity
Paul Grewal, Chief Legal Officer at Coinbase, expressed his views online, emphasizing the significance of the SEC’s approval. He stated that Ethereum is now effectively recognized as a commodity, a belief long held by the crypto community. Grewal’s sentiments were echoed by Sigel, who highlighted that Ethereum’s decentralized nature classifies it as a commodity. This recognition is supported by various regulatory bodies, including the Commodity Futures Trading Commission (CFTC) and federal court rulings. The SEC’s approval of Ethereum ETFs further solidifies this stance.
SEC Approval Boosts Ethereum Institutional Investment
The approved funds include the converted Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF. While the approval is a significant milestone, trading will begin after some time. Bloomberg ETF expert James Seyffart suggested that it could take a few weeks for the fund managers’ S-1 documents to be approved, enabling trading to commence.
The approval of these funds marks a critical development for Ethereum, paving the way for greater institutional investment. However, investors must wait for the final approval of S-1 documents before trading begins. This process is crucial to ensure compliance with regulatory standards and the smooth launch of these ETFs.
Conclusion
The SEC’s decision to approve spot Ethereum ETFs indicates that Ethereum is not considered a security. If it were labeled a security, a different approval process would be required. This approval is a significant victory for crypto advocates, highlighting Ethereum’s essential role in the industry. The Ethereum network supports many prominent projects and services, making this recognition crucial for its continued growth.
Interestingly, several ETH ETF issuers amended their applications this week, removing language about staking customer ETH. Since Ethereum transitioned to a proof-of-stake system in September 2022, ETH holders have been able to earn rewards by staking their funds. The SEC has previously viewed staking services offered by financial intermediaries as unregistered securities schemes. By removing references to staking, ETF issuers aim to avoid regulatory hurdles and expedite the approval process.
