The SEC has approved a rule change allowing the creation of ETFs that invest in ether, Ethereum's cryptocurrency. This decision comes six months after the SEC approved bitcoin ETFs, which have attracted over $12 billion in net inflows. While ether ETFs are expected to be initially smaller, their approval signals a potentially softer stance from the SEC towards crypto. The approval pertains to applications from various exchanges to list eight different ether funds, but does not set a launch date. Companies like BlackRock, Bitwise, and Galaxy Digital are moving forward with ether ETF plans. The price of ether rose modestly following the announcement, reflecting investor caution since approval doesn't guarantee fund launches. The ether ETFs will not include staking due to regulatory concerns, potentially limiting their appeal compared to bitcoin ETFs. Despite these limitations, ether remains a significant crypto asset, driving decentralized applications and tokenization on the Ethereum network.
