A Turning Point for Cryptocurrency: Spot Ethereum ETFs Receive Final SEC Approval to Begin Trading Today ⋆ ZyCrypto

In a watershed moment for the crypto industry, the U.S. Securities and Exchange Commission (SEC) on Monday green-lighted the latest S-1 filings related to Ethereum (ETH) spot exchange-traded funds, paving the way for the funds to begin trading as early as Tuesday (July 23).

This is a significant milestone for the world’s second-largest cryptocurrency by market capitalization, indicating that the SEC considers it a commodity rather than a security.

Ether ETFs officially hit the market today

What seemed highly unlikely about three months ago has become a reality today.

After weeks of back-and-forth over revisions to S-1 registration statements, the Securities and Exchange Commission has finally approved the first listing of Ether-based spot ETFs to begin trading today on their respective exchanges like the Chicago Board Options Exchange, Nasdaq, and the New York Stock Exchange (NYSE).

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On July 22, the SEC approved the registration forms of BlackRock, Fidelity, Franklin Templeton, Vaneck, Bitwise, 21Shares, Grayscale, and Invesco Galaxy. The BlackRock iShares Ethereum Trust will be listed on Nasdaq, while the Grayscale Ethereum Trust will go live on the New York Stock Exchange.

The decision to give US investors access to Ether through regulated, easy-to-trade products comes two months after the SEC’s decision approved their proposals 19b-4 on May 23 and follow the regulator’s decision green light Bitcoin (BTC) spot ETFs in mid-January. BTC ETFs have attracted more than $17 billion in money from new investors since their creation.

All spot ETH ETFs, except the Grayscale Ethereum Trust, will charge a management fee of between 0.15% and 0.25%. In particular, Fidelity, 21Shares, Bitwise, Franklin, and VanEck have set the fees for their Ether investment vehicles at 0% until a set period expires or until their products reach a specified amount in net assets.

Impact of ETF Launch on Ether Price

When the Spot BTC exchange-traded fund launched in January, it became the most successful ETF launch in American history. Due to the massive inflows seen and the speed with which traditional institutional investors rushed to invest, it propelled the price of Bitcoin to new highs near $74,000 just two months later.

Some analysts predict that ETH spot ETFs could drive up the price of ether up to $5,000inflows into these products will not be as high as for their Bitcoin counterparts. Bitwise’s CIO, for example, had previously predicted that the newly launched ETFs could generate capital inflows worth $18 billion in the first 18 months because Ethereum does not have the first-mover advantage that BTC had.

Ether was trading at $3,454 at press time, representing a 1.30% decrease in the past 24 hours.

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