The U.S. Securities and Exchange Commission (SEC) has granted permission for the New York Stock Exchange (NYSE) and Nasdaq to list eight exchange-traded funds (ETFs) that hold ether (ETH-USD). This decision marks a preliminary step towards enabling these ETFs to trade. However, the SEC still needs to approve the S-1 forms from money managers, which are necessary filings for publicly offering new securities, before the funds can begin trading. The SEC did not provide a specific timeline for when these approvals might occur.
The approval of these ETFs could lead to the integration of ether into 401(k)s, IRAs, and pension plans, thereby increasing mainstream acceptance of the digital asset. This decision comes approximately four months after the SEC approved ETFs that invest directly in bitcoin (BTC-USD).
The group seeking approval for ether ETFs includes prominent Wall Street firms such as BlackRock, Fidelity, and Franklin Templeton, as well as crypto-focused firms like Grayscale, Bitwise, and Hashdex. The anticipation of ETF approvals has influenced ether’s price, which increased as investors speculated on the SEC’s decision. Ether experienced a 2% drop on Thursday before rebounding shortly before the SEC’s announcement. Year to date, ether is up over 50%, outperforming bitcoin.
On Wednesday, the U.S. House of Representatives passed a bill designed to diminish the SEC’s control over crypto and designate the Commodity Futures Trading Commission (CFTC) as the primary regulator for the sector. The bill still needs Senate approval. Although the White House opposes the bill in its current form, it is willing to work with Congress on developing new regulations for digital assets.