The United States Securities Exchange and Securities Commission (SEC) has approved the VanEck Ethereum exchange-traded fund (ETF), marking a major milestone for the market.

VanEck filed the Notice of Effectiveness of the ETF on July 22 using the form S-1, a move to provide investors with a regulated means of gaining exposure to Ether (ETH) in the US.

The SEC's approval follows a series of filings and amendments submitted by several financial investment firms to the commission. This reflects a long line of regulatory scrutiny as the global investment manager pushes the ETF through.

VanEck began pushing for the Ethereum ETF with its initial registration filing on May 7, 2021. This reveals prolonged efforts and delays to meet the regulatory standards required for its approval.

Essential filings that led to the approval include the Prospectus under Rule 424(b)(3) and multiple amendments to the S-1 form.

The firm adjusted to SEC compliance requirements throughout this process. The S-1 form is required by the SEC for companies planning their first public securities offering. Meanwhile, the Rule 424(b)(3) prospectus provides final offering details after the S-1 is effective.

S-1 Amendments

In July 8 filings, VanEck amended their S-1 registration forms with the SEC to secure the listing and trading of spot ETF shares. As the last stage in the SEC ETF approval process, the crypto investments firm 21Shares also made amendments to receive final approval from the SEC.

Both firms' filings should have included launch dates for US exchanges. However, they indicated that the Ethereum ETFs would be launched as soon as practicably possible "after the effective date."

Grayscale Spot Ether ETF Launches on NYSE

Amid the SEC Ether ETF approvals, Grayscale, a digital asset manager, confirmed that its two spot Ether ETFs officially began trading on July 23 on NYSE Arca.

The Grayscale ETFs launch follows the SEC's decision to sign off the final approval on July 22, allowing several issuers to launch their products for trading.

On July 22, Grayscale transferred over $1 billion worth of ETH to Coinbase in preparation for the launch of its ETFs, moving 292,263 ETH as per its Ethereum Mini Trust July 18 filing.

The VanEck Ethereum ETF and other financial instruments are a victory for the crypto community because they open up new avenues for investment and mark a growing acceptance of digital assets in traditional financial markets.