The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum (ETH) ETFs from major financial firms including BlackRock, Fidelity, and Grayscale, in a surprising and rapid decision.
However, trading can only begin once the issuers’ S-1 registration statements are approved, a process that could take weeks or even months.
Previously, the SEC had shown little engagement with issuers, making this sudden approval unexpected and leading to speculation about possible political motivations.
A bipartisan group of House lawmakers had urged the SEC to approve the ETFs to maintain consistency in its standards, following the approval of spot Bitcoin ETFs.
The approval news has significantly reduced the Grayscale Ethereum Trust discount, and once converted to an ETF, holders can exchange their shares for the cash value of the underlying ether.
Despite this, Ethereum ETFs may not attract as much investment as Bitcoin ETFs, with analysts projecting they could gather $5 to $8 billion in assets, about 10 to 15% of what Bitcoin ETFs received.
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