The US Securities and Exchange Commission (SEC) has finally approved spot Ethereum ETFs, opening up a new chapter of institutional investment in the crypto market.
It comes after months of waiting with anticipation having previously shown its inclination towards allowing it. the approval has been reached after a strict review process that addressed concerns around Ethereum transitioning from a proof-of-work to proof-of-stake consensus mechanism last year.
As a result, the SEC’s approval will enable major asset managers including Fidelity, Franklin Templeton, Ark Investment Management, Invesco, Grayscale Investments, Bitwise Asset Management, and VanEck Associates to proceed with their Ethereum ETF offerings.
These companies have recently updated their filings stating that they will not be participating in yield farming with Ether which is one of the primary regulatory issues.
This decision by the SEC was recently hailed as a major milestone in the crypto industry by Bloomberg Intelligence analysts who had previously raised the odds from 25% to 70%.
The Ethereum spot ETF approval is another big deal in the crypto industry. Earlier this year, SEC also approved 11 spots Bitcoin ETFs, pointing to a broader change with regards to President Biden Administration’s attitude aimed at creating favorable conditions for doing business in the crypto space.
