The U.S. Securities and Exchange Commission (SEC) just approved eight spot Ethereum ETF applications through an omnibus order on Thursday in a landmark move signaling growing acceptance of cryptocurrencies within traditional finance.

The SEC’s decision arrived just four months after the regulator greenlit the first spot Bitcoin ETFs, marking a rapid shift in the regulatory environment.

Ethereum ETF Approvals Follow Last-Minute Scramble

The SEC granted approval for 19b-4 forms submitted by financial giants, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. Despite the initial hurdle being cleared, ETF issuers now face another: ensuring their S-1 registration statements become effective before trading can commence.

BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening.

h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT

— James Seyffart (@JSeyff) May 23, 2024

Although the SEC recently initiated discussions with issuers regarding these S-1 forms, the timeline is currently uncertain. Some analysts speculate a turnaround within weeks, while others point to historical precedents exceeding three months.

SEC Faces Scrutiny Over Unexpected Shift

The SEC’s decision comes as a surprise to many market observers. Previous interactions between the regulatory body and ETF issuers gave little indication of impending approvals, leading to speculation about the catalyst for this sudden shift. Some sources point to recent bipartisan pressure from House lawmakers urging the SEC to align its treatment of Ethereum ETFs with its prior acceptance of spot Bitcoin ETFs.

The unexpected move has already triggered notable market reactions. The Grayscale Ethereum Trust, for example, witnessed its discount shrink from 24% to 6% as its conversion to an ETF draws nearer. The conversion allows holders to exchange shares for the equivalent cash value of the underlying Ether.

While Bitcoin ETFs have witnessed huge inflows since their approval, amassing an additional 207,000 Bitcoin ($14 billion) on top of the 621,000 Bitcoin ($42 billion) already held by the Grayscale Bitcoin Trust pre-conversion, whether Ethereum ETFs will receive the same level of investor interest is unclear.