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News

SEC’s Ethereum Classification Has Now Changed For ETF Approval

May 21, 2024 - Around 2 mins mins to read

Key Points:

  • Fidelity’s spot Ethereum ETF application does not include ETH staking, suggesting the SEC’s Ethereum classification may have changed.
  • The SEC is expected to decide on several Ether ETF applications this week, with speculation of approval driving a recent surge in Ethereum’s price.
Van Buren Capital partner and renowned U.S. Financial lawyer Scott Johnsson recently revealed on the X platform that Fidelity’s application for a spot Ethereum ETF clearly states it will not feature an ETH staking component.
SEC's Ethereum Classification Has Now Changed For ETF Approval
SEC's Ethereum Classification Has Now Changed For ETF Approval 2

SEC’s Ethereum Classification Changed to Accommodate ETF Approval

The move, coupled with the unchanged commodity grantor trust structure and disclosures, suggests that the SEC’s Ethereum classification may have changed.

Following Ethereum’s transition to a proof-of-stake model, SEC Chair Gary Gensler indicated that such chains, which reward users with tokens for staking, could be considered securities. However, the SEC’s Ethereum classification has never been explicitly labeled as a security in any enforcement actions.

The SEC is set to announce its decision on several spot Ether ETF applications this week. Market analysts and investors noted a significant rise in Ethereum’s price on Tuesday, fueled by speculation that the SEC might approve these ETFs, contradicting previous expectations of rejection.

SEC Requests Updates to ETF Filings, Hinting at Potential Approval

Among the applications under review are those filed by CBOE to list Ether ETFs from VanEck and ARK Investments/21Shares. Initially, the SEC’s lack of engagement with exchanges and issuers suggested a likely rejection. However, in a surprising turn, SEC officials requested Nasdaq and CBOE on Monday to make rapid updates and changes to their filings—a step often seen before approval, according to Reuters.

Ether surged to $3,780, its highest level in two months, reflecting an 18% increase within 24 hours. This price rally is partly attributed to the optimism surrounding the potential approval of Ether ETFs, inspired by the success of Bitcoin ETFs and the broader excitement within the blockchain industry.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

SEC’s Ethereum Classification Has Now Changed For ETF Approval

Key Points:

  • Fidelity’s spot Ethereum ETF application does not include ETH staking, suggesting the SEC’s Ethereum classification may have changed.
  • The SEC is expected to decide on several Ether ETF applications this week, with speculation of approval driving a recent surge in Ethereum’s price.
Van Buren Capital partner and renowned U.S. Financial lawyer Scott Johnsson recently revealed on the X platform that Fidelity’s application for a spot Ethereum ETF clearly states it will not feature an ETH staking component.
SEC's Ethereum Classification Has Now Changed For ETF Approval
SEC's Ethereum Classification Has Now Changed For ETF Approval 4

SEC’s Ethereum Classification Changed to Accommodate ETF Approval

The move, coupled with the unchanged commodity grantor trust structure and disclosures, suggests that the SEC’s Ethereum classification may have changed.

Following Ethereum’s transition to a proof-of-stake model, SEC Chair Gary Gensler indicated that such chains, which reward users with tokens for staking, could be considered securities. However, the SEC’s Ethereum classification has never been explicitly labeled as a security in any enforcement actions.

The SEC is set to announce its decision on several spot Ether ETF applications this week. Market analysts and investors noted a significant rise in Ethereum’s price on Tuesday, fueled by speculation that the SEC might approve these ETFs, contradicting previous expectations of rejection.

SEC Requests Updates to ETF Filings, Hinting at Potential Approval

Among the applications under review are those filed by CBOE to list Ether ETFs from VanEck and ARK Investments/21Shares. Initially, the SEC’s lack of engagement with exchanges and issuers suggested a likely rejection. However, in a surprising turn, SEC officials requested Nasdaq and CBOE on Monday to make rapid updates and changes to their filings—a step often seen before approval, according to Reuters.

Ether surged to $3,780, its highest level in two months, reflecting an 18% increase within 24 hours. This price rally is partly attributed to the optimism surrounding the potential approval of Ether ETFs, inspired by the success of Bitcoin ETFs and the broader excitement within the blockchain industry.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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