SEC Approves Spot Ether ETPs

At the end of May, the Securities and Exchange Commission (SEC) approved applications from Nasdaq, CBOE and NYSE to list exchange-traded products (ETPs) tied to the price of Ether. This will allow for the listing and trading of eight spot Ether ETPs offered by various managers. The exchanges’ applications petitioned for SEC approval to change Rule 19b-4 forms to allow for the listing of Ether-based products. Even with this change, issuers need the SEC to approve fund registration statements detailing investor disclosures. The decision to approve Ether ETPs comes on the heels of the SEC’s approval of Spot Bitcoin ETPs in January. As with the Spot Bitcoin ETPs, the Ether-based products are not registered funds.

Ether is the cryptocurrency that fuels the Ethereum blockchain platform. The platform, similar to the Coinbase platform, allows cryptocurrency holders to transact in areas like digital art sales. It is considered the second largest cryptocurrency, behind Bitcoin.

Click here to read a summary explaining the SEC’s approval from Mayer Brown.