US regulators have approved spot exchange-traded funds (ETFs) containing ether (ETH), giving Americans access to the second most valuable cryptocurrency through easily traded instruments.
- The approval follows a multi-year approval process for Ethereum ETFs by the US Securities and Exchange Commission (SEC).
- Earlier in January, the SEC approved a Bitcoin ETF, which attracted tens of billions of dollars in investment.
- In late May, the SEC unexpectedly began engaging with ETF issuers, leading to final approval.
Analysts predict that a spot Ether ETF could push the price of Ether to $6,500, but inflows into these funds will not be as high as the Bitcoin ETF.
Research firm Steno Research expects the new ETFs to raise $15-$20 billion in the first year, comparable to seven months of inflows into Bitcoin ETFs.