Ethereum ETFs Approved by SEC, Commence Trading Today
The Securities and Exchange Commission (SEC) officially greenlit ethereum spot exchange-traded funds on Monday, allowing investors to access the world’s second-largest cryptocurrency through conventional markets. The trading of ethereum ETFs commenced at the opening of the market on Tuesday.
The SEC granted approval for 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).
Furthermore, the SEC authorized Grayscale to transform its Grayscale Ethereum Trust (ETHE) into a spot ETF, as reported by Bloomberg analysts James Seyffart and Eric Balchunas.
Each of the recently introduced spot exchange funds will contain ether, the native crypto token of the ethereum network. These entities also rolled out spot bitcoin ETFs in early January.
The majority of the new ETFs are slated to trade on the CBOE exchange, with exceptions like the Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF, which will trade on the New York Stock Exchange. The iShares Ethereum Trust will be listed on the Nasdaq.
Coinbase (COIN) will act as the custodian for eight of the newly sanctioned ETFs, a role it also fulfills for a significant portion of the bitcoin ETFs.
Fidelity will self-custody the underlying digital assets for its fresh investment products, making it the sole issuer with this capability, according to Fidelity.
Nathan McCauley, CEO of federally chartered digital asset bank Anchorage Digital, remarked, “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.”
In terms of price action, Ethereum saw a slight dip to $3,480 by Tuesday afternoon, following the anticipated approval news. The cryptocurrency has surged by almost 52% year-to-date.
Bitcoin was trading around $65,600 late Tuesday, experiencing a 3.7% decline over the past 24 hours, according to CoinDesk data. Bitcoin has witnessed a spike of approximately 56% in 2024.
Coinbase shares weakened by 2.8% on Tuesday, with the stock consolidating around a 283.48 buy point. The shares have surged by 48% so far this year.
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