- The Securities and Exchange Commission (SEC) has approved several spot Ethereum exchange-traded funds (ETFs) using delegated authority.
- This procedural change marks a departure from the SEC’s earlier decision-making process for spot Bitcoin ETFs, which involved a full commission vote.
- Bloomberg ETF analyst James Seyffart noted that using delegated authority is a standard practice within the SEC.
The SEC’s approval of Ethereum ETFs via delegated authority signifies a notable shift in regulatory procedures, potentially accelerating future crypto ETF approvals.
SEC Approves Ethereum ETFs Using Delegated Authority
The Securities and Exchange Commission (SEC) has made headlines by approving several spot Ethereum exchange-traded funds (ETFs) through its Trading and Markets Division using delegated authority. This decision bypasses the need for a full commission vote, which was previously required for similar approvals, such as those for spot Bitcoin ETFs. The approved 19b-4 filings come from major financial institutions, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton.
Implications of Delegated Authority
Bloomberg ETF analyst James Seyffart commented that the use of delegated authority is a common practice within the SEC. “Making decisions via delegated authority is the norm. This is how things are typically done. If the SEC required an official vote for every decision or every document — it’d be insane,” Seyffart remarked. This procedural change, while standard, has sparked interest due to its potential implications on the regulatory landscape and political dynamics within the SEC.
Future Steps and Market Reactions
Despite the approval of the 19b-4 forms, the ether ETFs still require the SEC’s S-1 registration statements to go effective before trading can commence. This additional step means that the debut of these ETFs on exchanges could take weeks. The crypto industry has reacted positively to the news, with many viewing it as a “historic move” that could pave the way for further regulatory approvals in the future. Market analysts are closely watching the SEC’s next steps, particularly how quickly the S-1 registrations are processed.
Conclusion
The SEC’s decision to approve Ethereum ETFs via delegated authority marks a significant procedural shift, potentially expediting future crypto ETF approvals. As the industry awaits the effectiveness of the S-1 registration statements, this development is seen as a positive step towards broader regulatory acceptance of cryptocurrency-based financial products. The market will be keenly observing the SEC’s next moves, which could set important precedents for the future of crypto ETFs.
