Ethereum
Ethereum Spot ETF Approval Expected Today
Ethereum Spot ETF – Coins
The Securities and Exchange Commission is expected to approve spot Ethereum ETFs today, giving the green light to a second cryptocurrency an investment vehicle that is expected to attract billions of dollars of liquidity from investors.
The proposed funds track ether, the token of the Ethereum blockchain, are expected to begin trading next week, according to Friday’s report statement of the Cboe exchange, where five of the funds will trade. The SEC is evaluating a total of 10 applications for spot Ethereum ETFs. People familiar with the process previously told etf.com that the funds would be approved today.
Path to Ethereum Spot ETF Approval
The green light for the funds will cap a saga that began with observers downplaying the chances of approval for the exchange-traded funds, and follows the wildly successful launch of Bitcoin spot ETFs in January. Those chances for the Ethereum product appear to have been bolstered by the politics of the presidential election, when the SEC’s reversal in June was seen as an attempt by Democrats to win over crypto fans likely to embrace Donald Trump after the Republican nominee made overtures to them.
With applications from the world’s largest ETF issuers, including BlackRock, Fidelity, Grayscale, Bitwise, 21Shares, Franklin Templeton, VanEck and a joint effort from Invesco Galaxy, the funds are funding traditional finance’s efforts to meet the growing demand for cryptocurrency investments.
Expected Trading Date of CBOE-Listed Ethereum Spot ETFs
List of Ethereum Spot ETFs
Source: Cboe
Ether is the second largest digital asset with a market capitalization of $420 billion, just behind bitcoin, which has a market cap of $1.1 trillion.
The SEC and Ethereum Spot ETFs
Ten U.S.-listed Bitcoin spot funds began trading on Jan. 11, a day after the SEC ended a nearly decade-long saga of application rejections (an 11th fund began trading in March). Those funds have generated about $16.6 billion in inflows and now manage about $55 billion in assets.
Expense ratios for these funds will fall almost entirely into the 0.15% to 0.25% range, although seven of the funds will waive at least some of their fees for initial periods, and Grayscale Ethereum Trust (ETHE)a conversion of an existing trust, will charge a 2.5% fee, according to regulatory filings last week.
Learn more: Ethereum Spot ETF Fee Fight Heats Up
(The SEC is unlikely to rule on a ProShares proposal that the asset manager submitted more recently than others and has not updated with the fees it will charge.)
The politics of cryptocurrencies and spot Ether
Just over two months ago, Ethereum spot ETF issuers seemed doomed to a long wait due to SEC anxiety over potential fraud and investor protections — concerns similar to those they had as Bitcoin spot ETF approvals approached.
The story continues
But the agency appeared to bow to political pressure, with crypto-skeptical Democrats and more receptive Republicans trying to convince digital asset investors and developers or at least not alienate them in a tight presidential election year. a rule change for 19-B4 Proposals submitted in May by the Nasdaq, NYSE and Cboe exchanges where the funds will be traded have increased the likelihood of final approval.
The likely debut of Ethereum Spot funds has drawn mixed reactions from analysts, who see potentially huge potential in decentralized smart contract networks for financial services and a range of other industries, but are unsure whether investors will embrace ether-based ETFs.
Learn more: Ethereum fever rises as issuers offer new ETFs
In a note to etf.com, Mark Connors, managing director and head of global macro strategy at Dallas-based bitcoin-focused financial services firm Onramp, wrote that the success of bitcoin ETFs and its Ethereum smart contract rival Solana has “left Ethereum with an identity crisis.”
“The middle child protocol,” Connors wrote, adding, “That’s why the ETF launch is a crucial test for the DeFi protocol, to see how many people show up and for how long.”
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