The US Securities and Exchange Commission has given the green light for the first spot Ethereum exchange-traded funds (ETFs). Trading is expected to begin as soon as Tuesday.
The move is widely considered a landmark achievement for the crypto world, giving mainstream recognition to the second-largest cryptocurrency, following the debut of Bitcoin ETFs earlier this year. Ethereum has an estimated market cap of about $415 billion.
The SEC approved eight ETFs, including the Grayscale Ethereum Mini Trust, Franklin Ethereum ETF, VanEck Ethereum ETF, Bitwise Ethereum ETF, 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, iShares Ethereum Trust and the Invesco Galaxy Ethereum ETF.
The introduction of these ETFs addresses key concerns around legitimacy, regulatory compliance, security, and accessibility, making Ethereum a more attractive investment option.
“The launch of ETH spot ETF trading in the US marks yet another significant milestone for Ethereum and the broader digital asset market,” said Richard Teng, CEO of Binance. “Much like the US Bitcoin ETFs that launched in January, this first wave of US Ethereum ETFs will provide more avenues to a broader range of investors to access the asset.
“While we anticipate a steady capital deployment into these ETFs, it is unlikely to be dramatic initially and will fluctuate based on various macroeconomic factors. However, I believe that the potential for ETF liquidity to grow exponentially is significant.”
With SEC approval and listing, these ETFs can now be invested in by institutions, which typically have a long-term investment horizon. Investors worldwide are looking expectantly at the first day of trading, ready to compare it with the first day of Bitcoin ETF trading.
The reception of US Bitcoin ETFs was very positive, recording an inflow of $4.7 billion on the first trading day. Interest remains high, with US Bitcoin ETFs having a cumulative total net inflows exceeding $16.59 billion as of July 17.
“Whether ETH ETFs will receive the same intensity of reception remains to be seen, but I am confident that this development will be overwhelmingly bullish for the whole digital asset industry,” Teng added.
AÂ recent survey by EYÂ found that nearly all institutions (94%) believe in the long-term value of digital assets and/or blockchain technology, with 50% of respondents expressing interest to invest in tokenized assets.
