Spot ETH ETFs Have Arrived: SEC Approves Registration Forms From 21Shares, Bitwise, BlackRock, Fidelity, VanEck and Invesco Galaxy

Coinbase Global Inc. (COIN), which happens to be the custodian for 8 of the 9 newly approved ETFs,also announced the clearance, describing it as an important milestone for cryptocurrencies.

The United States Securities and Exchange Commission (SEC) has approved nine spot Ethereum exchange-traded funds (ETFs) to begin trading on Monday, offering mainstream investors a direct exposure to the price movements of the world’s second-largest cryptocurrency.

As confirmed by Bloomberg senior ETF analyst Eric Balchunas, the 424(b) forms for the respective ETFs are now available on the SEC website, indicating that the regulator has cleared them for trading.

The SEC has approved registration forms filed by 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck and Invesco Galaxy. Grayscale's Trust and Mini Trust are the only funds that do not yet have effective documents from the SEC, which analysts expect to be filed on Monday morning ahead of the ETFs' launch.

It's official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow's 930am launch. Game on. pic.twitter.com/9MaBDBA8co

Coinbase Global Inc (NASDAQ:COIN), which serves as the custodian for eight of the nine newly approved ETFs, also announced the clearance. The company described it as an important milestone for cryptocurrency.

“ETH ETFs have arrived. Today, the SEC approved 9 spot ETH ETF applications. Their much celebrated arrival marks another important milestone for crypto in expanding access to and diversifying our cryptoeconomy. Here's why,” Coinbase said in a statement.

The websites of the new investment products, such as Blackrock's ishares Ethereum Trust, also went live on Monday, paving the way for a new era of trading for cryptocurrency-based funds.

After an initial lack of engagement between the SEC and issuers, the approvals were granted unexpectedly. Firms had received approval of 19b-4 forms in May but needed their registration statements to go effective before launching the ETFs.

Ahead of the anticipated launch of spot Ethereum ETFs in the U.S., Citi projected inflows of up to $5.4 billion in the first six months. However, the bank cautioned that the actual inflows and returns could be lower than their projections.

The analysts, led by Alex Saunders, highlighted that Ethereum offers long-term diversification benefits due to its broad range of applications, which are not currently reflected in the market.

“We believe that a key takeaway from our analysis is that Ethereum offers long-term diversification benefits due to its varied use-cases, which we believe are not currently reflected in the market (at least not to the extent that we would expect),” the analysts said.

Moreover, Michaël van de Poppe, a renowned cryptocurrency analyst, anticipates a surge in activity and value of tokens in the Ethereum ecosystem following the approval of spot Ethereum ETFs.

“After this approval, I expect to see a huge activity and value increase of tokens within the Ethereum space.”

At the time of writing, Ethereum is trading at $3,469.74, showing a slight decrease of 1.43% over the last 24 hours. Shares of Coinbase closed 2.86% higher at $265.15 during Monday’s regular trading session.

Photo by Kanchanara on Unsplash

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