Unlock the Editor’s Digest for free – SEC paves way for Ethereum ETFs

The US Securities and Exchange Commission has made a groundbreaking decision that could potentially revolutionize the world of cryptocurrency investing. The regulator has paved the way for the launch of eight exchange traded funds tied to ether, the native cryptocurrency of the ethereum blockchain, following the approval of the first bitcoin ETFs earlier this year.

This move has sparked widespread anticipation and excitement, causing ether’s price to soar more than 20% since Monday and over 60% year-to-date. The approval of rule changes by the SEC has opened the door for major financial institutions such as BlackRock, Fidelity, Invesco, and Ark Invest to offer ETFs that invest in ether.

“This is a key step to offering Ethereum access through the ETF structure, which will offer US investors easier access, higher protection, and safeguards,” said Invesco and Galaxy, a digital assets group, in a statement.

The SEC’s decision marks a significant regulatory shift after months of silence on the issue. SEC chair Gary Gensler recently addressed concerns about fraud and non-compliance in the crypto industry, citing cases like that of FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison in connection with missing funds from his cryptocurrency exchange.

Despite the approval of the rule changes, a second round of approvals will be needed before the ether ETFs can officially launch. It remains to be seen if and when the SEC will grant these approvals, but the industry is hopeful that this move signals a willingness by the regulator to approve the launch of these products.

Overall, this decision by the SEC has the potential to reshape the landscape of cryptocurrency investing and provide US investors with easier access to digital assets like ether. Stay tuned for further developments as the industry awaits the next steps in this exciting journey.