BREAKING: SEC Ready to Approve Ethereum ETFs This Week, Report Claims

In a significant departure from their previous skeptical stance, US regulators are reportedly leaning towards approving the long-awaited spot Ethereum ETFs for the second-largest cryptocurrency by market capitalization.

SEC Staff Signals Approval of Ethereum ETFs

According to a report by Barron’s, the staff of the US Securities and Exchange Commission (SEC) informed the stock exchanges on Monday that they are leaning towards approval of these products.

The agency has provided comments and advice on the ETF applications, and if the “outstanding issues” are resolved in time, approvals could be granted as early as this week.

Furthermore, the SEC’s recent involvement with exchanges further underscores the regulator’s attention to spot Ethereum ETFs. The Commision Reportedly contacted the Nasdaq, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE) to request updates and modifications to existing applications before an approaching legal deadline.

Of particular note is VanEck’s spot Ether ETF, which has been awaiting SEC approval for the past 240 days. The committee must decide before May 23 whether to approve or reject VanEck’s ETF.

Changing landscape

The introduction of Ethereum spot ETFs would provide investors with a more traditional and regulated route to gaining exposure to the cryptocurrency without the complexity associated with trading digital assets directly on cryptocurrency exchanges.

Suppose the SEC gives the green light to Ethereum spot ETFs. In that case, it will mark a major milestone in the maturation and adoption of Ethereum and the entire cryptocurrency market, as currently seen with the recently approved spot Bitcoin ETF market in both Hong Kong and the US.

The regulatory approval of such spot Ethereum ETFs products will increase transparency, improve market liquidity and potentially attract institutional investors waiting for a regulated framework to participate in the growing digital asset space.

While the final decision rests with the SEC, the agency’s positive stance on Ethereum ETFs signals a changing regulatory landscape, recognizing the potential benefits of and demand for such investment vehicles.

Ethereum ETFs
The daily chart shows that the price of ETH is on an upward trend. Source: ETHUSD on TradignView.com

At the time of writing, ETH is trading at $3,730, up nearly 20% in the past 24 hours, reaching a high of $3,840 during Tuesday’s trading session.

Featured image from Shutterstock, chart from TradingView.com

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