After the SEC gave the green light to the Ethereum spot ETF, Carlos Domingo, CEO of Securitize supported by BlackRock, analyzed that the SEC has established Ethereum as a regulated commodity. This will have a significant impact on companies building tokenized assets on the Ethereum platform, and more financial companies will enter the asset tokenization field in the future.
The US Securities and Exchange Commission (SEC) has officially approved the 19b-4 filings (exchange rule changes) for eight Ethereum spot ETF applications, including BlackRock and Fidelity, taking an important step towards the listing of Ethereum spot ETFs.
Note: Formal trading listing still requires the approval of another necessary S-1 registration statement document from the SEC, with an unspecified time.
The approval of the Ethereum spot ETF is of great significance to RWA company. When the SEC gave the green light, Ondo Finance governance token ONDO soared nearly 40% last week, hitting a new all-time high. Carlos Domingo, CEO of Securitize supported by BlackRock, analyzed that the approval of the Ethereum spot ETF clearly establishes Ethereum as a regulated commodity. This will have a huge impact on companies conducting asset tokenization on the Ethereum platform.
In March of this year, BlackRock and Securitize jointly launched the first asset tokenization fund on Ethereum, the “BlackRock USD Institutional Digital Liquidity Fund” (BUIDL). ONDO Finance added $95 million worth of BUIDL tokens to its tokenized fund product OUSG on March 27.
Given the approval of the Ethereum spot ETF, Carlos Domingo stated that he expects more conservative financial companies to enter the tokenization field as recent regulatory concerns are eliminated. Compared to Bitcoin spot ETFs, the approval of the Ethereum spot ETF is more important for tokenization. This clearly indicates that ETH is not a security, and from a regulatory perspective, it means that using Ethereum will be safe.
Other cryptocurrency ETF products are expected to emerge. Jaret Seiberg, from the TD Cowen Washington Research Group, released a report stating that the approval of the Bitcoin spot ETF earlier this year made the approval of the Ethereum spot ETF inevitable. It just happened about 6 months earlier than expected. Within the next year, there may be an ETF product that includes a basket of cryptocurrencies, possibly covering only Bitcoin and Ethereum, or even more currencies.
However, TD Cowen believes that this does not represent a change in the SEC’s overall stance on cryptocurrencies. SEC Chairman Gary Gensler, who holds a critical attitude towards cryptocurrencies, recently made a statement on the 22nd strongly opposing the cryptocurrency bill “Financial Innovation and Technology Act of the 21st Century” (FIT 21) that could weaken the SEC’s power.
Although the SEC may face setbacks, TD Cowen predicts that the SEC will remain majority Democrat-controlled until 2026 and will continue to sue cryptocurrency exchanges that the SEC believes are offering unregistered securities token transactions.
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