SEC approves Ethereum ETF’s but still can’t be available for trading

SEC approve Ethereum ETF:

The SEC approved rule changes, allowing exchanges to list spot Ethereum ETFs. Each ETF still needs individual approval from the SEC after the issuer submits a detailed registration statement.

The rumors about the SEC approving Ethereum ETFs become true. However recently Grayscales withdrew Ethereum futures ETF application, to create pressure on SEC. So as a result on May 23, 2024, the US Securities and Exchange Commission (SEC) allowed rule changes for creating spot Ethereum ETFs. This means investment firms can now offer ETFs that directly hold Ethereum (ETH).

Investors now have a regulated way to invest in Ethereum through these ETFs. This could make it easier for more people to invest in Ethereum and might attract more mainstream investors, possibly driving up Ethereum's price due to higher demand.

The SEC's rule changes let exchanges list spot Ethereum ETFs, but each ETF still needs separate approval from the SEC. The issuer must submit a detailed registration statement for this. While the rule change is a significant step, it means Ethereum ETFs won’t start trading immediately. The approval process for each ETF will take some time.

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The SEC has been careful about approving crypto ETFs because of worries about market manipulation and weak regulations. In May 2024, there were signs that the SEC was becoming more open to Ethereum ETFs, with requests for updated filings from issuers. This recent approval confirms that shift.

The SEC's approval of spot Ethereum ETFs is a major development for the cryptocurrency world. It shows a more accepting attitude from regulators and could lead to more people using Ethereum. However, getting each ETF approved and starting trading will still take some time.