Ethereum ETF approval: 7 things to know as the SEC approves new funds

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By David Brooks

Spot Ethereum ETFs are coming to Wall Street as the SEC approves rule changes to allow them to be listed on exchanges

The US Securities and Exchange Commission (SEC) changed his rules Approval of Spot Exchange Traded Funds (ETFs) for Cryptocurrencies ether (ETH-USD).

The decision comes six months after the SEC approved the spot Bitcoin (BTC USD) ETFs. Bitcoin funds have already seen net inflows of $12 billion. The price of Bitcoin has increased by 78% in the last six months.

However, the market reaction to the Ethereum ETF approval was more muted. Ethereum is down 1.7% in the last 24 hours.

What you should know about new Ethereum ETFs

Crypto analysts were surprised. Since the SEC action was expected by many experts, some said it was a “Sell the News” event. Ethereum prices rose 21% in the five days leading up to the decision. So far in 2024 they are up 58%.

  1. Julio Moreno from CryptoQuant written down the discount between the price of Ethereum and that of the Grayscale ETF Trust (OTCMKTS:ETHE) disappeared in the last days. The same thing happened before the spot Bitcoin ETF approval.
  2. ETH ETFs are expected to be smaller than their Bitcoin counterparts.
  3. Blackrock (NYSE:BLACK) will be among the companies that sponsor them. NasdaqThe NYSE Arca exchange and the CBOE All are planning to list Ethereum ETFs.
  4. The SEC lawsuit did not approve the funds themselves.
  5. Instead, it approved applications from the exchanges List up to 8 different Ethereum funds.
  6. The agency’s opinion on crypto has softened since it lost a legal battle over Bitcoin ETFs to Grayscale last year.
  7. The SEC still has disputes with some crypto managers. It has a lawsuit against Coinbase (NASDAQ:COIN) And octopus It says that “staking” as a service constitutes an unregistered security. Through staking, investors can earn interest on Ethereum holdings. A judge ruled against a motion to dismiss the Coinbase lawsuit in March. According to many experts, the elimination of staking makes Ethereum ETFs less attractive.

What happens next?

Final approval for certain spot funds could take weeks, but it can be accelerated.

It is now clear that Ethereum is coming to Wall Street in a larger way. Investors who want to invest their assets directly through ETFs will soon have a clear path ahead of them.

At the time of publication, Dana Blankenhorn did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of Publishing Guidelines.

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