SEC Greenlights Grayscale and ProShares Spot Ethereum ETFs for NYSE Arca Trading

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The U.S. Securities and Exchange Commission has approved two spot Ethereum ETFs for listing on NYSE Arca, marking a significant milestone in the crypto investment landscape. Final S-1 approvals are still pending before trading can commence.

In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has given the green light for two spot Ethereum exchange-traded funds (ETFs) to be listed on the New York Stock Exchange’s Arca electronic trading platform. The approval, disclosed in a July 17 filing, covers the Grayscale Ethereum Mini Trust and the ProShares Ethereum ETF.

This development marks a significant step forward in the integration of cryptocurrency investments into traditional financial markets. However, it’s important to note that while the Form 19b-4 filings have been approved, authorizing NYSE to facilitate trading of these funds, the issuers must still await final comments on their respective S-1 filings before the spot products can officially commence trading.

Grayscale, a leading crypto investment manager, expressed enthusiasm about the SEC’s decision. A company spokesperson stated, “Grayscale is excited to share that the SEC has approved Grayscale Ethereum Mini Trust’s (proposed ticker: ETH) Form 19b-4.” The company is currently preparing to list two spot Ethereum ETFs and continues to engage with SEC staff to secure full regulatory approval for U.S. spot Ethereum ETPs.

The Grayscale Ethereum Mini Trust is a new product, while the company’s existing Grayscale Ethereum Trust (ETHE), launched in 2017, received SEC approval in May to convert into an exchange-traded fund. Grayscale has announced plans to distribute shares of the new Mini Trust to current ETHE fund holders.

Meanwhile, ProShares, a relatively late entrant in this race, has also received approval for its Ethereum ETF. This comes after the SEC reportedly gave preliminary approval to at least three issuers to begin listing spot Ether ETFs as soon as July 23.

As the crypto investment landscape continues to evolve, a total of eight spot Ether ETFs are currently awaiting final regulatory approval. This follows weeks of discussions with the SEC and multiple amendments to the funds’ S-1 filings.

These approvals represent a significant milestone in the mainstream adoption of cryptocurrency investments, potentially opening up new opportunities for both institutional and retail investors to gain exposure to Ethereum through regulated financial products.