LIVEWhat is ETF approval?
Ethereum is one of the key assets in the modern cryptocurrency world. Having evolved beyond its origins as a niche interest for developers and individual investors, it is now a pivotal element in institutional investment portfolios. Ethereum's transition is propelled by its innovative features – smart contracts, decentralized finance (DeFi) applications, and non-fungible tokens (NFTs), which expand its financial utility. What is particularly noteworthy nowadays is the anticipated introduction of Ethereum-based Exchange Traded Funds (ETFs) that should inject new liquidity and accessibility into the market, attracting institutional investors seeking regulated exposure to Ethereum's value.
Like a mutual fund, an ETF must be registered with the Securities and Exchange Commission. Once it is approved, the fund becomes an investment company. The company buys and holds the assets outlined in its filing and securitizes them to sell to investors.