The United States Securities and Exchange Commission (SEC) has granted approval for two spot Ethereum exchange-traded funds (ETFs)—Grayscale Ethereum Mini Trust and ProShares Ethereum ETF—to be listed on the New York Stock Exchange’s (NYSE) Arca electronic trading platform. This significant development was confirmed through a filing dated July 17.
Details of the Approval Process
The SEC’s approval of the Form 19b-4 filing authorizes NYSE Arca to facilitate trading of these funds. However, the issuers must still await final comments on the ETFs’ respective S-1 filings before the spot products can officially commence trading.
Grayscale, in particular, expressed its enthusiasm about the approval. A spokesperson stated, “Grayscale is excited to share that the [SEC] has approved Grayscale Ethereum Mini Trust’s (proposed ticker: ETH) Form 19b-4.” The spokesperson added that Grayscale continues to work constructively with the SEC to seek full regulatory approval for U.S. spot Ethereum ETPs.
The Grayscale Ethereum Mini Trust is one of two spot Ethereum ETFs that Grayscale is preparing to list. In May, Grayscale received SEC approval to convert its legacy spot ETH fund, the Grayscale Ethereum Trust (ETHE), into an exchange-traded fund after filing a Form 19b-4. On July 17, Grayscale announced plans to distribute shares of the new Mini Trust to holders of the ETHE fund. The Grayscale Ethereum Trust, launched in 2017, was one of the first institutional investment vehicles for spot Ethereum.
The SEC has reportedly given preliminary approval to at least three issuers to begin listing spot Ether ETFs as early as July 23. A total of eight spot Ether ETFs are currently awaiting final regulatory approval after extensive dialogues with the SEC and multiple amendments to the funds’ S-1 filings.
ProShares Ethereum ETF
The ProShares Ethereum ETF, though a relatively late entrant in the race, filed its Form 19b-4 approximately three weeks after its competitors had already received approval. As a result, the ProShares fund is not among the eight expected to be listed in the upcoming week.
| Date | Event |
|---|---|
| May 2024 | Grayscale receives SEC approval to convert ETHE to ETF |
| July 17, 2024 | SEC approves Form 19b-4 for Grayscale and ProShares ETFs |
| July 17, 2024 | Grayscale announces distribution plans for Mini Trust |
| July 23, 2024 | Expected initial listings of approved spot Ether ETFs |
The approval of these Ethereum ETFs is a pivotal moment for the cryptocurrency market, signaling growing acceptance and integration of digital assets into traditional financial markets. Industry experts anticipate that the introduction of these ETFs will enhance liquidity and provide more investment opportunities for institutional and retail investors alike.
Industry insiders have noted the potential for increased market stability and investor confidence due to the regulatory oversight and structure provided by ETFs. The approval is seen as a positive step towards mainstream adoption of cryptocurrencies.
The SEC’s approval of the Grayscale and ProShares spot Ethereum ETFs for trading on NYSE Arca represents a significant milestone in the evolution of digital assets. As the final regulatory steps are completed, the market eagerly anticipates the launch of these ETFs, which are expected to drive further innovation and investment in the cryptocurrency space.
Featured image credit: Bastian Riccardi via Unsplash
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