Breaking: SEC approves spot Ethereum ETFs after shocking U-turn

Source Fxstreet
  • The US SEC approved spot ETH ETF applications on Thursday after initial delays.
  • SEC surprisingly began to engage with issuers on Monday after weeks of silence.
  • Ethereum may set a new all-time high as Bitcoin did after ETF approval.

The US Securities & Exchange Commission (SEC) approved 19b-4s filings of spot ETH ETFs on Thursday after several weeks of silence towards issuers.

SEC approves spot ETH ETF amended filings

The SEC approved 19b-4s filings of spot ETH ETFs on Thursday after asking exchanges to submit amended filings on Monday. The approval comes after weeks of silence from the SEC towards ETF applications.

The SEC would also have to approve S-1s applications — which may take some weeks — before the ETFs officially launch.

After the SEC approved spot Bitcoin ETFs in January, many expected the agency also to greenlight applications for spot ETH ETFs. However, the SEC reportedly refused to engage with issuers, postponing applications on several occasions. Unlike its approach with spot Bitcoin ETFs, where it was in constant contact with issuers, the SEC's silence led many to believe it wouldn't approve spot ETH ETFs. As a result, Bloomberg analysts Eric Balchunas and James Seyffart tagged approval odds of the ETFs at 25%.

In addition, Ethereum infrastructure provider Consensys court filings showed that the SEC was considering declaring ETH as a security after launching investigations into Ethereum-related firms.

However, the SEC surprisingly began engaging with issuers on Monday, asking exchanges to submit amended 19b-4s filings. As a result, Balchunas and Seyffart increased their approval odds to 75%, terming the move as largely political and possibly spurred by US President Joe Biden after Presidential candidate Donald Trump's pro-crypto speech.

What the Ethereum ETF approval mean for investors

Considering Bitcoin's run to a new all-time high and the general market rally following its ETF approval in January, several experts predict spot ETH ETF will have a similar effect. Specifically, many expect DeFi tokens to be among the largest gainers alongside Ethereum in the next couple of weeks.

Matthew Sigel, Head of digital assets at Van Eck, predicts that yield across staking protocols would skyrocket as ETH leaves the ecosystem into these ETFs. However, this could also have security consequences for the broader Ethereum ecosystem. Some analysts have predicted that spot ETH ETFs inflows would be tiny compared to Bitcoin as most investors won't want to miss out on staking rewards. A recent analysis by CCData sheds light on this take:

"Hypothetically, if you had opened a 1000 ETH position on January 1st, 2023 with an ETF provider, instead of holding native Ether, which accrues staking rewards, you would have missed out on gains of over $200,000."

(This is a developing story and will be updated as we get more information.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Oct 26, Mon
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Tesla jumps 5% as Barclays puts a $450 target on the SpaceX merger — the chart was already pointing to 431Tesla closed at $391.62 on October 26, up 5.21%, after Barclays upgraded the stock to Overweight and lifted its target to $450 from $370, citing a sharp inflection in Robotaxi miles and a potential SpaceX merger. The move also completed a double bottom at $345.88 and $349.33, with a neckline at $388.56 and a measured target of $431.24. Here is what the upgrade actually says, why the chart and the analyst now point the same way, and what would break the target.
Author  Irene Q.
Yesterday 05: 30
Tesla closed at $391.62 on October 26, up 5.21%, after Barclays upgraded the stock to Overweight and lifted its target to $450 from $370, citing a sharp inflection in Robotaxi miles and a potential SpaceX merger. The move also completed a double bottom at $345.88 and $349.33, with a neckline at $388.56 and a measured target of $431.24. Here is what the upgrade actually says, why the chart and the analyst now point the same way, and what would break the target.
placeholder
Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the riskAnthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
Author  Irene Q.
Yesterday 06: 02
Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
placeholder
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Author  TradingKey
Yesterday 10: 21
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
goTop
quote