Spot Ethereum (ETH) exchange-traded funds (ETFs) were approved by the U.S. Securities and Exchange Commission (SEC) on May 24th marking a significant development in the world of cryptocurrency regulation. The US Securities and Exchange Commission (SEC) finally approved applications for several Ethereum ETFs. This is a big deal for the crypto industry, as it opens up a new way for traders and investors to gain exposure to Ether through traditional financial markets. SEC accepted Bitcoin ETFs in January 2024.
The U.S. Securities and Exchange Commission (SEC) has approved eight applications for spot Ethereum ETFs, opening the way for Ethereum ETHUSD trading on Wall Street. Here are the eight ETFs that were approved:
Bitwise Ethereum ETF
iShares Ethereum Trust
VanEck Ethereum Trust
ARK/21 Shares Ethereum ETF
converted Grayscale Ethereum Trust
Franklin Ethereum ETF
Invesco Galaxy Ethereum ETF
Hashdex was the only fund administrator that did not receive regulatory approval.
While the 19b-4 forms which are necessary for setting up these funds have been approved, the exchange-traded funds need to get approval of the S-1 forms before trading can begin. As of writing it is not clear how long the process of approval of the S-1 will take but I expect it will take more than two months, sometimes it takes five months while in the case of Bitcoin ETFs that crucial period was 90 days.
Ethereum ETH Price
Ether price rallied last week amid growing speculation for a spot Ethereum ETF approval, but after the announcement, the “sell the news ” mood pushed the price down to $3500 and today is trading at $3670. ETHUSD on Monday managed to break above the $3800 mark. The technical momentum for the number two cryptocurrency is still bullish as the price holds above the 100-day moving average.
Ethereum traders and investors expect the ETFs to attract inflows that will match the inflows in Bitcoin funds (around 14 billion) after the Bitcoin ETFs approval. Still more cautious analysts see inflows somewhere between 3 to 7 billion.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
