Good news: despite expert skepticism, the Securities and Exchange Commission (SEC) has approved the applications for the creation of Ethereum ETFs. Bad news: trading in these funds won't begin immediately.
What's going on? The SEC has approved the 19b-4 filings, which are necessary to create a new ETF. However, before the ETFs can be listed on exchanges, the SEC must stamp its approval on the S-1 forms. And that's where things get complicated.
According to Bloomberg analyst James Seyffart, the actual introduction of these ETFs to trading platforms will take several weeks to a few months. This is unlike the case of Bitcoin ETFs, which were immediately listed on exchanges.
Galaxy Digital predicts that ETH ETFs will be available for trading in July or August.
Why is this unusual?
The reason for this unusual situation is unclear. It's possible that the SEC initially refused to approve the ETFs, but changed its mind under political pressure. This could explain the lack of coordination between the SEC and exchanges, which would enable trading in these ETFs.
Cryptocurrency has become a political issue in the US. In recent times, Donald Trump has announced that he accepts cryptocurrencies as a form of funding for his campaign. Additionally, former presidential candidate Ron DeSantis has promised to protect the US market for Bitcoin. Even Robert F. Kennedy Jr., a long-time advocate for cryptocurrency, has been vocal about his support for it.
Even among cryptocurrency skeptics, there appears to have been a change in attitude. This week, some members of Congress voted in favor of a bill regulating the cryptocurrency market in the US. Specifically, the bill aims to strip the SEC of its authority over this market.
It's unclear what exactly caused this change in attitude, but it's clear that cryptocurrency has become a major issue in US politics.
