The recent approval of forms for several spot Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission's (SEC) Trading and Markets Division has drawn attention to the decision-making process within the agency. Notably, the approval was made by the Trading and Markets Division, rather than the SEC commissioners themselves.
This distinction was highlighted in the order approving 19b-4 forms for ETFs from major players such as BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. The order concluded with a line revealing that the decision was made "For the Commission, by the Division of Trading and Markets, pursuant to delegated authority."
Read more: Where's Ethereum Headed Next After SEC Approves Ethereum ETFs?
Spot Ethereum ETF Approval—Who's Making the Call?
The recent approval of spot Ethereum ETFs by the Securities and Exchange Commission's (SEC) Division of Trading and Markets, rather than by SEC Chair Gary Gensler or the commissioners, highlights a procedural difference in the decision-making process compared to the approval of spot bitcoin ETFs earlier this year.
In the case of spot bitcoin ETFs, the decision involved a vote by the commissioners, with SEC Chair Gensler alongside Republican Commissioners Hester Peirce and Mark Uyeda approving, while Democratic Commissioners Jaime Lizárraga and Carolina Crenshaw disapproved. Additionally, many of the commissioners released statements regarding the spot bitcoin ETFs.
Read more: Bitcoin and Ether Prices React as Spot ETH ETF Approval Triggers $350M Liquidations
However, the SEC indicated that it will not be providing further comments beyond the order regarding the spot Ethereum ETFs. Bloomberg ETF analyst James Seyffart characterized the agency's decision to utilize delegated authority as a normal practice.
What It Means for the Market?
The approval of spot Ethereum ETFs marks a significant development for the cryptocurrency market, particularly for Ethereum. It opens up avenues for institutional investors to gain exposure to Ethereum through regulated financial products, potentially leading to increased liquidity and broader market participation.
Read more: SEC’s Approval of Eight Ether ETFs and Its Market Impact
This move may also signal a growing acceptance of cryptocurrencies by regulatory authorities, paving the way for further integration of digital assets into traditional financial markets. Additionally, the decision underscores the evolving regulatory landscape surrounding cryptocurrencies, highlighting the need for market participants to stay informed and adapt to changing dynamics.
See more: Cryptocurrency Prices and Market Cap
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.