In a significant development for the cryptocurrency market, the Securities and Exchange Commission (SEC) granted approval for Ethereum spot exchange-traded funds (ETFs) late Monday. This decision paves the way for investors to gain exposure to the world’s second-largest cryptocurrency through traditional financial markets. The newly approved Ethereum ETFs will begin trading as the market opens today.
The SEC has greenlit eight ETFs, including the Grayscale Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), Bitwise Ethereum ETF (ETHW), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), BlackRock’s iShares Ethereum Trust (ETHA), and the Invesco Galaxy Ethereum ETF (QETH). Additionally, the SEC has approved the conversion of the Grayscale Ethereum Trust (ETHE) into a spot ETF, as reported by Bloomberg analysts James Seyffart and Eric Balchunas.
Each of these new ETFs will hold ether, the native cryptocurrency of the Ethereum network. This move follows the launch of spot Bitcoin ETFs earlier this year, signaling a broader acceptance of cryptocurrency assets in the regulated financial sphere.
Most of the newly approved ETFs will trade on the CBOE exchange. However, the Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF will be listed on the New York Stock Exchange. The iShares Ethereum Trust, meanwhile, will trade on Nasdaq. Coinbase, a prominent crypto exchange, will serve as the custodian for eight of these ETFs, continuing its role as a custodian for a majority of the Bitcoin ETFs as well.
Nathan McCauley, CEO of Anchorage Digital, a federally chartered digital asset bank, commented on the approval, stating, “The launch of spot Ethereum ETFs marks a major step forward in regulatory clarity for the digital asset class. Between the rise of spot crypto ETFs and legislative progress in Congress, the regulatory outlook today is the most promising it has been in recent memory. The ETF wrapper will provide a new pathway for safe and compliant exposure to Ethereum, driving billions in inflows from institutions and consumers alike.”
This approval represents a milestone in the integration of cryptocurrency with traditional financial markets, offering a new avenue for investors to participate in the growing digital asset economy. As Ethereum ETFs begin trading, the market will be closely watching their performance and the subsequent impact on both the cryptocurrency and traditional financial landscapes.
