Key Insights
- Multiple spot Ethereum ETFs approved by SEC, set to start trading on Tuesday
- Major asset managers and crypto-focused firms among those launching Ethereum ETFs
- Industry expects lower demand compared to Bitcoin ETFs, but still significant interest
NEW YORK (MarketsXplora) – Several spot Ethereum exchange-traded funds (ETFs) are poised to begin trading on Tuesday, marking a significant milestone for cryptocurrency investment products in the United States.
The U.S. Securities and Exchange Commission (SEC) has allowed registration forms from a range of asset managers to go effective as of Monday afternoon. These include major players such as BlackRock, Fidelity, and VanEck, alongside crypto-focused firms like Bitwise, 21Shares, and Grayscale.
This development comes approximately six months after the launch of spot Bitcoin ETFs, which have seen substantial success, attracting over $16 billion in net inflows according to FactSet data.
Ophelia Snyder, co-founder and president of 21Shares, hailed the approval as “further proof that crypto as an asset class is here to stay.”
Industry analysts anticipate lower demand for Ethereum ETFs compared to their Bitcoin counterparts. Nate Geraci, president of The ETF Store, suggested that demand might be about a third of what was seen for spot Bitcoin ETFs, given the relative market sizes.
Read also! Ethereum ETF Inflows Could Drive Ether Above $5,000, Says Bitwise CIO
The road to approval was not without hurdles. Despite receiving SEC approval for 19b-4 forms in May, issuers faced weeks of back-and-forth on edits to registration statements. The approvals came as a surprise to many, following a period of limited engagement between the SEC and issuers.
Cynthia Lo Bessette of Fidelity emphasized the firm’s commitment to meeting evolving customer needs through “thoughtful index and product design” and “industry-leading security.”
Looking ahead, the industry is already speculating about potential next steps. These could include the introduction of options trading for spot crypto ETFs and the possibility of incorporating staking features into Ethereum ETF products, though both would require additional SEC approval.
Jake Chervinsky, Chief Legal Officer at Variant, expressed optimism about the eventual inclusion of staking in Ethereum ETFs, stating on X that it’s a matter of “when, not if.”
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