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• SEC’s Trading and Markets Division, not commissioners, approved spot Ethereum ETF forms.
• Decision-making process differs from previous spot Bitcoin ETF approvals.
• Industry reacts positively, calling it a “historic move.”

The Securities and Exchange Commission (SEC) recently approved 19b-4 forms for several spot Ethereum exchange-traded funds (ETFs) from notable entities like BlackRock, Fidelity, Grayscale, and others. However, a notable detail in the approval sheds light on the decision-making process.

Key Points:

1. Delegated Authority: The approval order, signed by the SEC’s Trading and Markets Division, signifies that the decision to greenlight spot Ethereum ETFs was made by this division, not SEC Chair Gary Gensler or the commissioners.
2. Contrast with Bitcoin ETFs: Unlike previous approvals for spot Bitcoin ETFs, where commissioners voted, this decision didn’t involve a vote from the commissioners. Instead, it was made through delegated authority.
3. Industry Response: The crypto industry welcomed the SEC’s decision, considering it a significant step forward. However, despite the approval of 19b-4 forms, trading cannot commence until S-1 registration statements are effective, which may take some time.

While the decision-making process may have differed from past approvals, the greenlighting of spot Ethereum ETFs marks a significant development in the crypto space, potentially opening up new avenues for investors and further mainstream adoption of cryptocurrencies.

A high ranking member at an issuer called the delegated authority part an “interesting detail.” 

“We don’t [know why] — it’s likely related to the recent political developments,” that source said. 

The crypto industry cheered news of the SEC’s greenlight on Thursday, calling it a “historic move.” 

Though the 19b-4 forms have been approved, S-1 registration statements still need to go effective before trading can begin. Some, however, say that it could take weeks.