SEC's Division of Trading and Markets Approves ETH Spot ETF, Reigniting Debate

SEC's Division of Trading and Markets Approves ETH Spot ETF, Reigniting Debate

The U.S. Securities and Exchange Commission (SEC) has approved a spot Ethereum (ETH) exchange-traded fund (ETF) 19b-4 filing on Thursday, according to cryptocurrency media outlet Cointelegraph. This approval has reignited a debate in the community over why this approval entity differed from that of spot Bitcoin (BTC) ETFs. The approval of this ETH spot ETF was not voted on by SEC commissioners but rather delegated to the Division of Trading and Markets, as per the official SEC filing. This marks a notable difference from the approval process for the Bitcoin spot ETF in January, which was approved by a 3-1 vote of the SEC commissioners. Bloomberg ETF analyst James Seyffart commented on the matter, stating that "it's pretty standard practice for a particular division of the SEC to be delegated authority to approve certain products. It would be crazy if every single decision required a vote of the commissioners." However, prominent BTC investor Kyle Chassé argued that "delegation of ETF approvals to the Division of Trading and Markets means the commissioners can still object formally within ten days. The move could be an attempt to avoid a formal vote for political reasons." The approval of this ETH spot ETF is a significant development for the cryptocurrency industry, as it provides investors with a new way to gain exposure to Ethereum. It remains to be seen whether this approval will lead to a similar approval for a spot Bitcoin ETF.