Ethereum ETF greenlights suggest increased appetite for crypto investments.

crypthub

1/24/2025, 11:48:56 AM

Ethereum ETF Approval: A Major Milestone

The recent approval of Ethereum (ETH) exchange-traded funds (ETFs) has sparked a surge in crypto investment products, according to TD Cowen's Washington Research Group. The swift approval, coming approximately six months ahead of expectations, follows the successful clearing of Bitcoin ETFs earlier this year. This trend signals a growing acceptance of cryptocurrencies in the financial market.

Predictions for the Crypto ETF Market

Jaret Seiberg, a TD Cowen team member, forecasts a diverse range of crypto token investment offerings in the coming year, encompassing both Bitcoin and Ethereum. Despite SEC Chair Gary Gensler's critical stance on cryptocurrencies, TD Cowen predicts the SEC will maintain its Democratic majority until 2026, continuing to target unregistered security trades.

The Status of Ether (ETH) as a Commodity

Industry experts interpret the approval of spot ETH ETFs as an indication that the SEC recognizes Ether as a commodity, rather than a security. This interpretation, backed by Bloomberg ETF analyst James Seyffart and digital asset lawyer Justin Browder, suggests a broader application to other crypto tokens. Adam Cochran from Cinneamhain Ventures agrees, suggesting this reasoning could extend to tokens of various projects.

SEC Approval Process and Launch Dates

On May 23, the SEC approved spot ETH ETFs for 19b-4 applications from prominent issuers like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK, Invesco Galaxy, and Bitwise. Several issuers removed staking from their final amendments. Seyffart predicts final S-1 approvals within weeks, while Eric Balchunas suggests a launch as early as mid-June.