- SEC has finally given the green light to Ethereum spot ETFs introduced by major issuers.
- This development marks a significant milestone for the cryptocurrency market.
- “Today’s approval once again proves the resilience of the crypto asset class,” said Ophelia Snyder, co-founder of 21Shares.
SEC approval paves way for Ethereum spot ETFs to start trading, signaling a new era for cryptocurrency investors.
SEC Approves Ethereum Spot ETFs for Trading
The U.S. Securities and Exchange Commission (SEC) has approved the filings allowing major issuers to trade Ethereum spot Exchange-Traded Funds (ETFs) on the stock exchanges. This approval includes prominent names such as 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy. Initially receiving form 19b-4 approval from the SEC in May, these funds required a final nod to commence market trading.
Ethereum Spot ETFs Ready for Market Debut
As of today, Ethereum spot ETFs are officially ready to start trading, representing a significant advancement for Ethereum and the crypto market at large. Ophelia Snyder, co-founder and president of 21Shares, expressed her enthusiasm by stating that the launch of their 21Shares Core Ethereum ETF (CETH) signifies a pivotal moment for both the company and U.S. investors.
Fidelity’s Head of Digital Asset Management, Cynthia Lo Bessette, emphasized that their spot Ethereum ETF aims to provide investors with a thoughtfully designed index and product proposition. Similarly, Matt Hougan from Bitwise noted the arrival of the ETF era in crypto, highlighting that investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs.
Industry Insights and Market Expectations
The approval of these Ethereum ETFs is not just a bureaucratic development; it marks a moment of maturation for crypto assets within traditional finance. Kyle DaCruz, Director of Digital Assets at VanEck, reflected on their pioneering application for an Ethereum ETF in 2021. He reiterated their commitment to making Ethereum exposure accessible and user-friendly for investors.
Nate Geraci, President of The ETF Store, provided an important market perspective by suggesting that the demand for spot Ether ETFs might be around one-third of what has been witnessed for spot Bitcoin ETFs. He described this as a reasonable expectation for the reception of these new investment products.
Conclusion
In summary, the SEC’s approval of Ethereum spot ETFs introduces a new investment vehicle for crypto enthusiasts and institutional investors alike. This approval not only validates the asset class but also expands the market dynamics by offering accessible and familiar instruments for Ethereum risk and exposure. As these products start trading, the crypto market is poised for further evolution, promising new opportunities and avenues for investment.
