After months of doubt, the US Securities and Exchange Commission (SEC) might soon be ready to approve spot Ethereum exchange-traded-funds (ETFs). This comes just over four months after the US securities regulator approved a handful of spot Bitcoin ETFs.
On May 20, 2024, the SEC asked Nasdaq, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE) to make quick adjustments to their applications to list spot ether ETFs, according to Reuters, a positive sign that approvals might be around the corner. The agency asked the exchanges to submit their revisions by the end of Tuesday, May 21, 2024, sources told Reuters.
The price of Ethereum jumped over 17% Monday, May 20, 2024, on the news and reached over $3,800 a coin early Tuesday. Ethereum’s price has since retreated some, trading at around $3,686 at the time of this writing on Wednesday, May 22, 2024.
We’ll update this page as new information emerges.
Latest spot Ethereum ETF updates
June 13, 2024: US SEC Chair Gary Gensler told US Senators at a hearing on Thursday that Ethereum ETF applications could be approved this summer.
May 24, 2024: The US SEC has approved key regulatory filings tied to the issuance of spot Ethereum ETFs from Grayscale, Bitwise, BlackRock, VanEck, Ark, Invesco Galaxy, Fidelity and Franklin Templeton. The SEC must still approve the ETF issuers’ S-1 registration statements before trading can begin.
May 23, 2024: Conversations concerning S-1 registration filings have started between the SEC and spot Ethereum ETF issuers, according to FOX Business journalist Eleanor Terrett.
When would a spot Ethereum ETF be available?
It could take a couple of months before these ETFs begin trading, says Steven McClurg, head of US asset management for CoinShares, as reported by Reuters. The agency will need time to review the applications, which could have hundreds of pages of disclosures.
The exchange applications are the first step in a two-step approval process, the second step being approval of ETF registration statements. According to Reuters, the regulator must decide whether to approve applications to list ether ETFs provided by VanEck and ARK Investments/21Shares by the end of this week.
What is a spot Ethereum ETF?
Similar to a spot bitcoin ETF, a spot Ethereum ETF is a type of ETF that will hold physical ether as its underlying asset. This contrasts Ethereum futures ETFs, which invest in Ethereum futures contracts and allow investors to speculate on the future price of the cryptocurrency without directly owning the coin. Ethereum futures contracts are currently available to trade.
The US SEC hasn’t yet approved Ethereum spot ETFs as of May 22, 2024, so you can’t invest just yet. However, if approved, here’s how you can add these new assets to your portfolio:
Choose a platform and open an account. If you’re a beginner, our ETF broker picks below can help you choose. Then, provide your personal information and sign up.
Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
Select and research ETFs. Search the platform for the ETF ticker symbol. The platform should provide the latest information available.
Buy your ETF shares. Place a market order or limit order with your preferred number of shares. It’s that simple.
The whole process can take as little as 15 minutes. You’ll need a smartphone or computer, an internet connection, your passport or driving license and a means of payment.
$0 commission on stocks, ETFs and options, with no options contract fees
Earn a rebate on every contract traded
Get 5.1% APY on your cash
What might the spot Ethereum ETFs do for Ethereum’s price?
Approval of a spot ETF would make Ethereum, the second-largest cryptocurrency by market cap, accessible to a broader range of investors. Whereas many traditional brokers still don’t offer direct crypto investing, most will likely offer any approved spot Ethereum ETF, just as they have with spot bitcoin ETFs.
Since bitcoin spot ETFs began trading on January 11, 2024, investors have poured more than $12 billion into them.(3) While there’s no telling the same will happen for approved spot Ethereum ETFs, demand appears high. Analysts at AllianceBernstein say ether may rally more than 75% on approval of a spot ether ETF.(4)
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Written by
Matt Miczulski
Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full profile
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