Eight Ethereum Spot ETFs Get Approval from SEC – What’s Ahead?

The U.S. Securities and Exchange Commission (SEC) has made a notable decision by approving eight Ethereum (ETH) exchange-traded funds (ETFs). This approval was granted to notable financial firms, including Fidelity, BlackRock, Bitwise, and Grayscale.

The regulator also approved ETFs from Franklin Templeton, VanEck, Ark, and Invesco Galaxy, marking a significant milestone for the crypto industry. The anticipation now shifts to the possibility of XRP being the next digital asset to get similar approval.

Detailing the ETFs Approval Process

Before the newly approved Ethereum ETFs can begin trading, the issuers must finalize their S-1 registration statements.This process could take a few weeks, according to Bloomberg analyst James Seyffart.

Meanwhile, the SEC's accelerated approval also covers trust that will hold ether either in whole or in part. This decision was based on the proposals meeting the criteria set by the Exchange Act in Section 6(b)(5).

This section's primary focus was typically on preventing fraudulent and manipulative acts and protecting investors and the public interest. The proposals also adhere to Section 11A(a)(1)(C)(iii) of the Exchange Act, which aims to sustain the availability of information about securities transactions.

Notably, exchanges listing bitcoin-based ETFs had previously received instructions from the SEC. These instructions hold that they must carry out detailed surveillance-sharing agreements with regulated markets related to the assets. The agency stated that this is the only way the exchanges can satisfy their regulatory obligations.

In the meantime, traders can't buy and sell ether on the Chicago Mercantile Exchange (CME). However, this fact does not affect the approved exchanges' affiliation with the Intermarket Surveillance Group.

This affiliation allows them to share critical market surveillance information from CME, including ether futures. The SEC considers these agreements good enough to mitigate manipulation risks and fraud, even though CME does not feature spot ether.

Digital Asset Community Celebrates SEC's Ethereum ETF Approval

Interestingly, the SEC's approval of spot ETFs was widely accepted in the digital asset community. TopGcrypto, a prominent figure in the crypto world, drew attention to the potential benefits of the SEC's decision. He noted that it could lead to exciting times for Ethereum and the broader market.

Ripple CEO Brad Garlinghouse also expressed optimism, suggesting XRP might soon receive the same approval.He emphasized the importance of the SEC's decision and passing the FIT21 crypto bill, calling these developments meaningful for the industry.

Also, market analysts have quickly offered optimistic predictions following the approval of the ETH ETFs.

A prominent example is Miles Deutscher. The same forecasted that ETH's value could surge to $6,446 by July. However, this prediction hinges on the possibility of the ETFs final approval.

He compared this potential rise to Bitcoin's historical price surge after its ETF approval, suggesting Ethereum could see a similar 75.17% increase.

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