In a surprising turn, the U.S. Securities and Exchange Commission (SEC) approved eight spot Ethereum (ETH) exchange-traded funds (ETFs), marking a significant milestone for the cryptocurrency industry. The approved ETFs come from major financial firms, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. This decision, confirmed through an omnibus order, allows these issuers to move forward with their 19b-4 forms, though their S-1 registration statements must still go effective before trading can begin. Analysts speculate this process could take weeks to months, depending on the SEC’s efficiency.

The approval was unexpected, given the SEC’s previous lack of engagement with issuers regarding Ethereum ETFs. This sudden change, described as unprecedented and potentially politically influenced, caught many by surprise, including parts of the SEC itself. The shift follows a bipartisan push from House lawmakers urging the SEC to approve the ETFs for consistency and legal coherence with previous Bitcoin ETP decisions. As anticipation grew, the Grayscale Ethereum Trust’s discount narrowed significantly, reflecting market optimism. While Ethereum ETFs may not match the massive inflows of their Bitcoin counterparts, they are still projected to attract substantial investments, estimated between $5 to $8 billion, a robust figure for any ETF launch.

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