The U.S. Securities and Exchange Commission (SEC) has approved the first Ethereum Exchange-Traded Funds (ETFs). This is the first time the SEC has endorsed any spot ETF related to Ethereum, marking a significant milestone for the cryptocurrency industry which has faced intense global regulatory scrutiny in recent years.
The SEC approved applications from Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of Ethereum. The filings list eight Ethereum ETFs from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and BlackRock’s iShares Ethereum Trust, proposed for listing on Nasdaq, NYSE Arca, and Cboe BZX Exchange.
The approved ETFs will hold Ethereum directly without engaging in proof-of-stake validation or generating new ether. This move is expected to bring a substantial influx of institutional capital into the Ethereum market, with Standard Chartered Head of Digital Assets Research Geoff Kendrick predicting inflows of $15 to $45 billion in the first 12 months.
The approval of Ethereum ETFs and the passage of the FIT21 crypto bill suggest a shift in the Biden Administration’s stance on crypto, following former President Trump’s pledge to support the industry and foster a business-friendly environment in the US. The approval comes just five months after the SEC gave the green light to 11 spot Bitcoin ETFs, marking a significant shift in the regulatory landscape for crypto in the US.
This development opens the door for both retail and institutional investors to gain exposure to Ethereum’s price performance through a regulated, exchange-traded product.
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