SEC's Ethereum Classification Has Now Changed For ETF Approval
Key Points:
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.
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.
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London, United Kingdom, 25th June 2024, Chainwire
Chicago, United States, 25th June 2024, Chainwire
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