Ethereum
SEC Approves Ether ETF, But What Is Ethereum? YF Explains
The Securities and Exchange Commission (SEC) has has given its approval for the American stock exchanges to begin trading ETF ether, next in tThe traces of spot bitcoin ETFs (BTC-USD) should be approved in early 2024.
But what exactly are the fundamental differences between the two main cryptocurrencies (ETH-USD) and the blockchain networks on which they operate? Wealth! Host Brad Smith it destroys everything.
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This message was written by Luke Carberry Mogan.
Video transcription
GOOD.
The SEC takes its first step toward allowing Ethereum S ETFs to trade. Securities and Exchange Commission approves applications for eight Ethereum S ETFs. However, further approvals are required before the products can be launched.
But back to all you curious crypto investors who are just dipping their toes or feet in the water here.
What is ether?
With a market capitalization of over $450 billion?
Currently, it is the second largest cryptocurrency behind Bitcoin, and is used to power the Ethereum blockchain as well as Ether and Bitcoin.
They differ here on several points.
The most important difference is that the Ether and Bitcoin blockchains run on two different frameworks used to power Ether crypto transactions.
It works based on Bitcoin proof of stake, proof of work for Bitcoin.
Transactions are verified by computers using electricity, called “cryptocurrency miners,” while for the Ether network, these same transactions are verified through a process known as staking.
Now, staking is putting your money, in this case your ether, into a pool to help secure the network and then validate transactions.
And in exchange, you have the opportunity to get more ether.
Think of it almost as an interest.
The SEC approved the 11 spot Bitcoin ETF S earlier this year, and hype around the currency drove Bitcoin, reaching an all-time high of over $73,000 in March.
The SEC has just cleared the way for trading of eight S ether ETFs pending further approvals.
And the development is the latest example of the crypto industry’s success in Washington, as it pushes for more favorable regulation and greater freedom to launch new products.
For years, the SEC has denied requests to create such cryptocurrency-related ETFs, with some of those victories changing.