Ethereum
SEC Approves Ether ETF Issuance, Products Can Begin Trading Today
The U.S. Securities and Exchange Commission (SEC) has approved ETH ETFs, providing final confirmations for S-1 filings submitted by multiple issuers. The products are available for trading today. This decision was highly anticipated by the crypto community, and many welcomed it.
This follows the SEC’s approval of BTC ETFs in January, which was unbelievable to many at the time. The feeling was mutual towards ETH ETFs just a few weeks ago. However, there was confirmation when SEC Chairman Gary Gensler declared that his agency would approve it this summer.
With ETH being offered through products issued by investment banks, a wide range of investors will now jump into the wealth-creating capabilities of the second-largest cryptocurrency. The doubts they had about the type of asset, its storage, etc. should no longer worry them. And this is precisely the case with BTC ETFs. Tens of billions of dollars have been invested in the some products offered by 11 financial houses.
BlackRock, Fidelity, VanEck, 21Shares, Invesco Galaxy, Bitwise, and Franklin Templeton have received SEC approval. The other companies may have received it as well, but have not yet confirmed it or are in the process of obtaining it, which could happen at any time. However, ProShares is processing the final S-1 filing at its own pace and will begin trading at a later date.
As these issuers offer their products and inject funds into the asset from new sources, ETH’s price action may take a new shape. This is what happened with BTC, as the anticipation of the asset’s ETF launch and offering triggered huge price movements, pulling BTC and the rest of the cryptocurrency market out of a severe bear cycle. ETH can expect the same, reaching price levels it has never reached before.
Matt Hougan, Bitwise’s Chief Investment Officer, said: “We are now fully into the era of crypto ETFs.” He continued: “Investors can now access over 70% of the liquid crypto asset market through low-cost ETPs.”