Ether ETFs Expected to Begin Trading SoonEther ETFs Expected to Begin Trading Soon The Securities and Exchange Commission (SEC) has given the green light to asset managers BlackRock, Fidelity, Franklin Templeton, Grayscale, and 21Shares to launch exchange-traded funds (ETFs) that hold ether (ETH). Trading in these ETFs could commence as early as Tuesday. Significance of Ether ETFs The approval of ether ETFs is a significant development for the cryptocurrency industry, as it could make ether more accessible to a wider range of investors, including those with retirement accounts like 401(k)s and IRAs. This wider adoption could further legitimize ether and make it more likely to be adopted as a mainstream investment. Crypto Industry Success in Washington The SEC’s approval of ether ETFs is part of a broader trend of the crypto industry gaining traction in Washington, with policymakers pushing for looser regulations and more opportunities for new product launches. This support extends to the upcoming presidential election, with Republican candidate Donald Trump embracing digital assets as a way to contrast with the Biden administration’s more cautious approach. Trump’s Position on Cryptocurrency Trump, who has previously criticized bitcoin, recently referred to cryptocurrency as “great” in an interview. This suggests that the GOP may be moving towards a more pro-crypto stance. Market Impact The news of ether ETFs has positively impacted the crypto market, with the price of bitcoin rising by more than 6% in the past month and ether gaining over 3% in the past five days. Ether remains below its all-time high, but the ETF approval could provide a boost to its value. BlackRock’s Perspective on Bitcoin BlackRock CEO Larry Fink has expressed support for bitcoin as a “legitimate financial instrument.” The company’s launch of an ether ETF indicates its commitment to meeting the growing demand for exposure to digital assets. iShares Ethereum Trust ETF (ETHA) BlackRock has declared the registration statement for its iShares Ethereum Trust ETF (ETHA) effective with the SEC. This ETF will provide investors with a way to gain exposure to ether without having to directly purchase and hold the cryptocurrency.
Exchange-traded funds holding ether (ETH-USD) could begin trading on Monday after regulators give final approval, according to asset managers overseeing the new ETFs.
The Securities and Exchange Commission on Monday gave the green light to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale and 21 Shares, the companies said.
Trading could begin as early as Tuesday.
These moves could make ether, the world’s second-largest cryptocurrency, a potential fixture in 401(k)s, IRAs and retirement plans and help the digital asset gain wider adoption.
“This is an example of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” said Cynthia Lo Bessette, head of digital wealth management at Fidelity, in a press release.
The approvals come about six months after the SEC allowed many of these asset managers to launch ETFs that hold bitcoin (BTC), the world’s largest cryptocurrency.
This new development is the latest example of the crypto industry’s recent success in Washington, which is pushing for looser regulations and more freedom to launch new products.
It’s just days before Republican presidential candidate Donald Trump gives his endorsement during his speech at the Bitcoin 2024 conference in Nashville this weekend.
Trump and many in his party are embracing digital assets to create a contrast with the Biden administration, which has taken a tougher stance on many of the sector’s major players after a market crash in 2022.
The GOP said in its 16-page party platform last week that “Republicans will end Democrats’ illegitimate and un-American crypto repression.”
ARCHIVE PHOTO: The BlackRock logo is pictured outside its headquarters in the Manhattan borough of New York City, New York, U.S., May 25, 2021. REUTERS/Carlo Allegri/File photo (REUTERS/Reuters)
Trump, who has called bitcoin a “scam” in the past, called cryptocurrency “great” in an interview with Bloomberg last week.
The price of bitcoin has risen by more than 6% in the past month to around $68,000, bringing the world’s largest cryptocurrency very close to the record set earlier this year.
Ether has risen by more than 3% in the past five days. It has been falling in recent months and remains far from its all-time high in November 2021.
Trading in ether ETFs is the latest example of the broader public acceptance of digital assets by some prominent figures on Wall Street.
One such figure is BlackRock CEO Larry Fink, who described bitcoin as a “legitimate financial instrument” in an interview with CNBC last week.
“I believe bitcoin has a role to play in portfolios,” Fink said.
The story continues
BlackRock was one of the companies approved in January to issue a spot bitcoin ETF, which proved to be a major boon for the first half of the year.
The iShares Bitcoin ETF (IBIT) saw net inflows of $18 billion in the first six months.
On Monday, the company announced that the registration statement for iShares Ethereum Trust ETF (ETHA) had been declared effective by the SEC.
“Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) that offer ease of access, liquidity and transparency,” Jay Jacobs, head of U.S. thematic and active ETFs at BlackRock, said in a statement.
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