✅ Ethereum ETFs Approved by SEC, Bringing Popular Funds to Second-Largest Cryptocurrency
Issuers received approval for their latest S-1 filings, which means that the funds could begin trading as early as Tuesday.
U.S. regulators have given final approval for spot exchange-traded funds that hold Ethereum's ether (ETH), giving Americans access to a second major cryptocurrency via the easy-to-trade vehicles.
The decision caps a years-long process to get ether ETFs approved by the Securities and Exchange Commission and follows the regulator's approval of bitcoin (BTC) ETFs in January. Packaging ether in an ETF wrapper could make them more palatable to conventional investors since the funds can be bought and sold through traditional brokerage accounts. Since their debut in January, bitcoin ETFs have attracted tens of billions of dollars of investment.
Approval did not seem certain just weeks ago. But in late May, SEC officials abruptly began engaging with wannabe ETF issuers after a long silence. Then, on May 23, the regulator approved a key filing, opening up a pathway to full approval through the latest decision.
"We've now fully entered the ETF era of crypto," Matt Hougan, chief investment office at Bitwise, said. "Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs."
"Being the first to file for an Ethereum ETF back in 2021, we have long believed investors should have access to Ethereum exposure in a vehicle they find accessible and familiar," said Kyle DaCruz, head of digital assets at VanEck. "If Bitcoin is digital gold, then Ethereum is the open-source App Store and the gateway for exposure to the thousands of applications that will utilize blockchain technology."
