U.S. regulators have granted final approval for spot exchange-traded funds (ETFs) that hold Ethereum’s ether (ETH), providing Americans with access to a second major cryptocurrency through these easy-to-trade vehicles. This landmark decision concludes a years-long effort to gain approval from the Securities and Exchange Commission (SEC) for ether ETFs, following the regulator’s approval of bitcoin (BTC) ETFs in January.
The introduction of ether ETFs is expected to make the cryptocurrency more attractive to conventional investors, as these funds can be bought and sold through traditional brokerage accounts. Since their launch in January, bitcoin ETFs have amassed tens of billions of dollars in investments, highlighting the potential for similar success with ether ETFs.
Approval for ether ETFs seemed uncertain just weeks ago. However, in late May, SEC officials unexpectedly began engaging with prospective ETF issuers after a prolonged silence. On May 23, the regulator approved a crucial filing, paving the way for the latest decision to grant full approval.
“We’ve now fully entered the ETF era of crypto,” said Matt Hougan, Chief Investment Officer at Bitwise. “Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs.”
Kyle DaCruz, Head of Digital Assets at VanEck, expressed enthusiasm for the approval. “Being the first to file for an Ethereum ETF back in 2021, we have long believed investors should have access to Ethereum exposure in a vehicle they find accessible and familiar,” he said. “If Bitcoin is digital gold, then Ethereum is the open-source App Store and the gateway for exposure to the thousands of applications that will utilize blockchain technology.”
With this approval, the investment landscape for cryptocurrencies in the U.S. continues to evolve, offering new opportunities for investors to diversify their portfolios with digital assets.
