The Graph (grt) 
The United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23. This approval process differed from the earlier approval of spot Bitcoin ETFs in January. Unlike the spot Bitcoin ETFs, which were approved by a vote from a five-member committee including SEC chief Gary Gensler, the spot Ether ETFs received approval from the SEC’s Trading and Markets Division.
The SEC approved the 19b-4 filings from several major financial firms, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, the SEC did not provide additional comments beyond the official decision. The filing stated:
“For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”
Many in the crypto community were puzzled by the different processes for clearing the two types of crypto ETFs. Bloomberg ETF analyst James Seyffart noted that such procedures are typical. He explained that requiring the SEC to hold an official vote for every decision or document would be impractical. Seyffart added that it would have been interesting to see the political alignments if there had been a vote.
Despite Seyffart’s explanation, some remain skeptical. One user on social media pointed out that a commissioner could challenge the decision within the next 10 days, suggesting that the use of delegated authority might obscure politically sensitive votes.
“The approval was issued via delegated authority, which means there won’t be public commissioner votes to see. But it also means any commissioner can technically challenge and ask for a review or vote.”
Another social media user speculated that the SEC’s decision could be influenced by factors such as political pressure, upcoming elections, and the implementation of environmental, social, and governance (ESG) rules.
The crypto industry has welcomed the SEC’s spot Ether ETF approval, calling it a significant move. Although the 19b-4 forms have been approved, the S-1 registration statements still need to be processed before trading can begin. This means that the debut of spot Ether ETFs on exchanges could still be weeks or months away, as issuers await the SEC’s approval of the S-1 registrations.
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