The U.S. Securities and Exchange Commission has given the green light for the first spot Ethereum (ETH) ETFs to be traded in the United States. Trading is expected to commence tomorrow, July 23.
On July 22, the SEC officially accepted the securities filings from various issuers for spot Ethereum exchange-traded funds, paving the way for trading to begin on the scheduled date of July 23.
A total of eight issuers, including industry giants like Fidelity, Blackrock, and VanEck, as well as 21Shares and Bitwise, have had their ETH ETF products approved by the SEC. These approvals come after the initial applications were granted at the end of May, with firms awaiting the final approval of their S-1 filings before trading could commence.
With the launch of spot ETH ETFs on the horizon, there is uncertainty about how the price of Ethereum will react. A report from Kaiko Research released today highlighted that the response to futures-based ETH ETFs launched last year was not as strong as expected.
Over the past 24 hours, the price of ETH has dipped by approximately 2.5%, currently hovering around $3,400. Analysts from IntoTheBlock have pointed out that Ethereum’s price is facing significant resistance at the $3,500 levels.
Similar to the response to spot Bitcoin ETFs, industry analysts view the introduction of spot ETH ETFs as a positive signal for broader adoption. The availability of these ETF products on traditional exchanges through brokerage accounts opens up access to a wider range of more traditional investors who are already comfortable trading in this manner.
Following the approval of spot Bitcoin ETFs for trading in the U.S. earlier this year, there has been a surge in interest and investment. Since the launch of spot BTC ETF trading, the price of Bitcoin has surged by nearly 50%, currently trading around $67,700.
Overall, the approval of spot Ethereum ETFs in the U.S. marks a significant milestone for the cryptocurrency market. Investors now have more options to gain exposure to the digital asset space through regulated and accessible investment vehicles, potentially driving further growth and adoption in the future.