SEC Approves Spot Ethereum ETFs, Opening Doors for Mainstream Investor Engagement

The recent approval by the SEC marks a significant moment for the cryptocurrency market, as it allows for the trading of spot Ethereum exchange-traded funds (ETFs). These ETFs will enable mainstream investors to directly engage with the price movements of Ethereum, the second-largest cryptocurrency. Eric Balchunas, a senior ETF analyst, verified that the registration forms needed for trading are now live on the SEC’s website, signaling that the trading can begin on Tuesday morning.

Many major financial companies, including BlackRock, Fidelity, and Invesco Galaxy, have received approval for their Ethereum ETFs. The only exceptions are Grayscale’s Trust and Mini Trust, which analysts expect will secure approval soon. Coinbase Global, which is the custodian for eight of the nine newly approved funds, celebrated this milestone, viewing it as a key step in promoting broader access to cryptocurrencies.

The arrival of spot Ethereum ETFs has raised expectations for potential market inflows. Citi analysts forecast that the U.S. could see around $5.4 billion flow into these funds within the first six months, though they caution that actual results may vary. Leading expert Michaël van de Poppe also predicts an increase in activity within the Ethereum ecosystem following this announcement. Ethereum’s current trading price stands at around $3,470, reflecting a slight dip, while shares of Coinbase have seen gains in regular trading. As the market adapts to this new development, many will be watching to see how Bitcoin and other digital assets respond to the approval.