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đ„The (SEC) has given approval for US stock exchanges to begin listing ether ETFs, following in the footsteps of the spot bitcoin ETFs (BTC-USD) greenlit at the beginning of 2024.
đ„But what exactly are the fundamental differences between the two major cryptocurrencies (ETH-USD) and the blockchain networks they run on? Wealth! Host Brad Smith breaks it all down.
Well
The SEC is taking its first step towards allowing ether ETF S to trade the Securities and Exchange Commission approving applications for eight ethereum ETF S. However, there are further approvals that are needed before products can launch.
But let's back up for all of some of the crypto curious investors out there who are just sticking their foot or toes in the water here.
What is ether?
With a market cap of over $450 billion?
Right now, it's the second largest Cryptocurrency behind Bitcoin, and it's used to power the Ethereum Blockchain but ether and Bitcoin.
They differ in several ways here.
The most important difference is that the ether and Blockchain and Bitcoin Blockchains run on two different frameworks used to power crypto transactions ether.
It runs on proof of stake Bitcoin proof of work for Bitcoin.
Transactions are verified by computers using electricity so called crypto miners, while for ether's network, those same transactions are verified through a process known as staking.
Now, staking is like putting your money in this case your ether into a pool to help keep the network secure and then validate transactions.
And in return for this you have a chance to get more ether.
Think of it almost like interest.
The SEC approved 11 spot Bitcoin ETF S earlier this year, and hype around the currency led to Bitcoin, reaching an all time high of over $73,000 back in March.
The SEC has just cleared the way for eight ether ETF S to trade pending some further approvals.
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