Yahoo Finance
Hey folks.
Final approval for spot Ethereum ETFs given by the United States regulators giving Americans access to the second major crypto via the easy-to-trade vehicles.
The decision comes after the Securities and Exchange Commission approved bitcoin (BTC) exchange-traded funds (ETFs) in January, capping a years-long process for ether ETF clearance.
Since ether can be bought and sold using conventional brokerage accounts, putting the funds in an ETF wrapper may help them appeal to more traditional investors. Bitcoin ETFs have drawn tens of billions of dollars in investment since their launch in January.
Just weeks ago, the approval didn't seem certain. But at the end of May, officials of Securities and Exchange Commission began engaging abruptly with wannabe ETF issuers after a long silence.
The regulator then on May 23, approved a key filing, making way for full approval through latest decision.
According to Matt Hougan, chief investment officer at Bitwise, "we've now fully entered the ETF era of crypto".
According to Kyle DaCruz:
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.
In January, the approval and beginning of trading of Bitcoin ETFs became the most successful launch in history of exchange traded products in terms of the speed of money rushing into them, pushed the price of Bitcoin up to a new ATH after jumping more than 58% within just two months.
While a spot Ethereum ETF might raise the price of ether to $6,500, according to some analysts, inflows into those funds won't be nearly as large as those into their bitcoin-focused counterparts.
The newly launched ETFs might see $15 billion to $20 billion in inflows in their first year, according to research firm Steno Research. This is about the same amount of money that spot bitcoin ETFs have received in just seven months. According to a report by the firm, Ethereum lacks a compelling story among its supporters, similar to bitcoin's "digital gold" idea, and it does not have the "first-mover advantage" that bitcoin enjoyed.
Not a financial advice.