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May 27, 2024

Former SEC Chair Jay Clayton Says Approval and Trading of Ethereum ETFs Now ‘Inevitable’

By Alex Richardson

Jay Clayton, the former Chair of the U.S. Securities and Exchange Commission (SEC), says it’s inevitable that a spot Ethereum (ETH) exchange-traded fund (ETF) will go live on American stock exchanges.

In a new interview on CNBC television, Clayton notes that the SEC has already approved the product itself, and will likely proceed to approving the actual trading of the ETF products.

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“There’s two pieces of approval for one of these types of products. There’s the listing approval which is what happened [on May 23rd], and then there’s the approval of the product itself which is still pending. That’s called the registration statement. That we need to find out.

They always say ‘This product is eligible for listing’ but it will not actually be trading until that registration statement is approved…

So it’s a step in the direction [of ETH ETFs trading].

I think it means it’s inevitable. We went through this same process with the Bitcoin product where almost all or all of the questions were decided. The question that was decided [on May 23rd], to speak technically, is that this market is efficacious enough for this product to be listed on the exchange, but there are other questions out there.”

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Last week, the SEC approved form 19b-4 filings from BlackRock, Fidelity, VanEck, Grayscale, Bitwise, Ark, Franklin Templeton and Invesco Galaxy simultaneously.

Although the products have nearly obtained the full go-ahead, the SEC must approve the firms’ S-1 registration filings before trading can begin.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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