In a significant move for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has granted official approval for several Ethereum spot exchange-traded funds (ETFs). This decision will allow investors to gain exposure to Ethereum, the world’s second-largest cryptocurrency, through traditional financial markets. The approved Ethereum ETFs are set to begin trading on Tuesday.
Key Players in the Market
The SEC has approved eight ETFs, including:
- Grayscale Ethereum Mini Trust (ETH)
- Franklin Ethereum ETF (EZET)
- VanEck Ethereum ETF (ETHV)
- Bitwise Ethereum ETF (ETHW)
- 21Shares Core Ethereum ETF (CETH)
- Fidelity Ethereum Fund (FETH)
- iShares Ethereum Trust (ETHA)
- Invesco Galaxy Ethereum ETF (QETH)
Additionally, Grayscale has received approval to convert its Grayscale Ethereum Trust (ETHE) into a spot ETF. Bloomberg analysts James Seyffart and Eric Balchunas have confirmed this conversion.
Trading Venues
Most of the newly approved ETFs will trade on the CBOE exchange, with the exceptions of the Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Bitwise Ethereum ETF, which will be listed on the New York Stock Exchange. The iShares Ethereum Trust will be available on the Nasdaq.
Market Impact
Following the SEC announcement, Ethereum’s price eased slightly to $3,450. This dip of 1.5% from its overnight high of $3,559 was anticipated, according to CoinDesk data. Despite this minor fluctuation, Ethereum has shown a robust performance, rallying nearly 51% year-to-date.
In contrast, Bitcoin remained steady, trading around $67,700. The leading cryptocurrency has experienced a remarkable 61% increase in 2024, demonstrating the broader market’s bullish sentiment.
Looking Forward
The approval of these Ethereum ETFs marks a pivotal moment for both the cryptocurrency and traditional financial markets. By offering a regulated and accessible way to invest in Ethereum, these ETFs could attract a wider range of investors and potentially drive further adoption of cryptocurrencies.
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