Thomas Daniels
The United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23, marking a distinct departure from the approval process used for spot Bitcoin ETFs earlier this year.
Unlike the spot Bitcoin ETFs, which were approved following a vote from the five-member committee, including SEC Chairman Gary Gensler, the spot Ether ETFs received approval through the SEC’s Division of Trading and Markets.
The SEC sanctioned the 19b-4 filings from prominent financial firms such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. The official decision came without additional commentary from the SEC. The filing indicated:
“For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”
This procedural divergence sparked curiosity within the crypto community. However, Bloomberg ETF analyst James Seyffart clarified that such approvals are not uncommon. He emphasized that requiring the SEC to conduct an official vote for every decision would be impractical. Seyffart also suggested that observing the political dynamics in a vote scenario could have been enlightening.
Despite Seyffart’s explanation, some skepticism remains. A user on X noted that any commissioner could challenge the decision within 10 days, suggesting that the use of delegated authority might be intended to avoid politically sensitive votes. Another X user speculated that the SEC’s decision might be influenced by political pressures, upcoming elections, and the enforcement of environmental, social, and governance (ESG) guidelines.
The crypto industry lauded the SEC’s approval of spot Ether ETFs as a “historic move.” Nevertheless, the approval of the 19b-4 filings does not conclude the process. The issuers must still await the SEC’s approval of the S-1 registration statements before trading can commence, implying that the debut of spot Ether ETFs on exchanges may still be weeks or months away.
