The US Securities and Exchange Commission (SEC) has officially approved Ethereum (ETH) exchange-traded funds (ETFs), giving the green light to multiple issuers who submitted their S-1 applications. This exciting news means that trading of these ETFs can begin as early as today. The crypto community has been eagerly awaiting this development, and the approval follows the SEC’s decision to approve Bitcoin (BTC) ETFs back in January, a move that many thought was unlikely at the time. The announcement that ETH ETFs would be approved this summer came from SEC Chair Gary Gensler, bringing optimism and excitement to the market.
With major investment banks now offering ETH through these ETF products, a wider range of investors will have the opportunity to participate in the wealth-building potential of the second-largest cryptocurrency. Concerns about asset security, storage, and other issues can now be put to rest, following the path paved by BTC ETFs, which have attracted billions of dollars from investors through products offered by 11 financial institutions.
Notable names like BlackRock, Fidelity, VanEck, 21Shares, Invesco Galaxy, Bitwise, and Franklin Templeton have all received approval from the SEC to offer ETH ETFs. While other issuers may also have received approval but have not yet confirmed it, or are still in the process of obtaining it, the overall trend is clear. ProShares, for example, is proceeding at its own pace with the final S-1 application submission and will launch its ETH ETF at a later date.
The introduction of these ETF products will bring new streams of capital into the ETH market, potentially reshaping the price action for the cryptocurrency. Just as the anticipation and subsequent launch of BTC ETFs led to significant price movements and helped lift the entire crypto market out of a bear cycle, ETH can also expect to see increased demand and potentially reach new all-time highs.
Matt Hougan, Chief Investment Officer at Bitwise, commented on this milestone, stating, “We’ve now fully entered the ETF era of crypto.” He emphasized that investors can now access a significant portion of the liquid crypto market through low-cost exchange-traded products (ETPs), making it easier for a broader range of market participants to get involved in the crypto space.
Overall, the approval of ETH ETFs marks a significant step forward for the crypto industry, opening up new opportunities for investors and potentially driving further growth and adoption of Ethereum and other cryptocurrencies. As these products begin trading and more capital flows into the market, the future looks bright for ETH and the broader crypto ecosystem.