U.S. Approves Spot Ethereum ETFs, Major Investment Firms Set to Launch Trading This Month

In a significant move for the cryptocurrency market, the United States has officially approved the trading of spot Ethereum ETFs, set to begin on July 23. Among the prominent applicants who received approval are major investment firms such as BlackRock, Fidelity, and Grayscale. This development is expected to attract billions of dollars into the Ethereum ecosystem and could further enhance its overall market position.

On July 22, the United States Securities and Exchange Commission (SEC) gave its final approval for the necessary S-1 registration statements, allowing these financial products to be listed on major stock exchanges including the Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange. The inclusion of established firms like BlackRock and Fidelity is seen as a strong endorsement for the growing acceptance of cryptocurrency among traditional investment channels.

The list of approved spot Ether ETFs not only includes heavyweights like BlackRock and Grayscale but also firms like 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy. Notably, the upcoming BlackRock iShares Ethereum Trust is set to be traded on the Nasdaq, while the Grayscale Ethereum Trust will launch on the NYSE. To make the offerings more attractive, many issuers have stated that they will waive management fees for an initial period, which could draw in even more investors. This approval comes shortly after President Joe Biden’s decision to withdraw from the 2024 election, a move some analysts believe could have a positive impact on crypto assets. Overall, market sentiment appears bullish, with forecasts suggesting that these new ETFs could capture 10% to 20% of the trading volumes observed in Bitcoin ETFs launched earlier this year.