KEYTAKEAWAYS
- Spot Ethereum ETFs approved for trading on July 23 in the US.
- Multiple issuers including BlackRock and Fidelity to offer products.
CONTENT
Major financial institutions including BlackRock, Fidelity, and Grayscale set to launch Ethereum-based exchange-traded funds on US stock exchanges, marking a significant milestone for cryptocurrency adoption in traditional finance.
The United States Securities and Exchange Commission (SEC) has given final approval for spot Ethereum exchange-traded funds (ETFs) to begin trading on July 23, 2024. This decision marks a significant milestone in the integration of cryptocurrencies into mainstream financial markets.
>> Also read: ETH Spot ETFs Nearing Approval: Impact on ETH Price and Ecosystem Projects to Keep an Eye On
On July 22, the SEC approved the final S-1 registration statements necessary for the launch of these ETFs on major US stock exchanges, including the Nasdaq, New York Stock Exchange (NYSE), and Chicago Board Options Exchange (CBOE).
The list of successful spot Ether ETF issuers includes industry giants such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy. This approval comes two months after the SEC greenlit their 19b-4 applications on May 23, which allowed for the listing and trading of spot Ether ETFs on their respective exchanges.
Among the approved products, the BlackRock-issued iShares Ethereum Trust will be listed on the Nasdaq, while the Grayscale Ethereum Trust will trade on the NYSE. Most of these ETFs will offer competitive base fees ranging between 0.15% and 0.25%.
In a move to attract investors, several issuers including Fidelity, 21Shares, Bitwise, Franklin, and VanEck have announced fee waivers for their spot Ether ETFs. These waivers will remain in effect until either a set time period elapses or their products reach a specific amount in net assets.
The approval of spot Ether ETFs coincides with significant political developments in the United States. Just a day before the SEC’s decision, US President Joe Biden withdrew from the 2024 election race. This withdrawal has been interpreted by some analysts as potentially beneficial for cryptocurrency assets.
eToro market analyst Josh Gilbert commented on the situation, stating, “The longer that we see Trump staying ahead in the election odds, the more crypto assets will price in his victory.” This suggests that political shifts could have a notable impact on the cryptocurrency market.
Industry experts anticipate that spot Ether ETFs will attract between 10% to 20% of the investment flows seen by spot Bitcoin ETFs, which were launched about six months ago. This projection underscores the growing interest in Ethereum as an investment asset and the potential for further cryptocurrency adoption in traditional finance.
