The U.S. Securities and Exchange Commission has issued notices of effectiveness for several ethereum-related exchange-traded funds (ETFs) that begin trading today, July 23.
The information available on the regulator's website confirms the effectiveness of the S-1 filing of different issuers, including Van Eck, Grayscale, Bit by bit, Invescoand Fidelityamong others.
Pre-market trading is Now openBlackRock's iShares ethereum Trust (ETHA) opened at $27.50 before dipping slightly to $26.64 at press time.
On July 22, reports emerged that the SEC had given final approval for spot ethereum ETFs to begin trading on July 23. Asset management firm Grayscale x.com/Grayscale/status/1815688403381531021″>confirmed that its ethereum ETF products (Grayscale ethereum Mini Trust and ethereum Trust Fund) would begin trading on the New York Stock Exchange today.
The development ends weeks of waiting for ETF products of the second-largest digital asset by market capitalization, which the regulator had extensively investigated and initially suggested was a security.
Market experts praised the move, noting that ETFs will provide convenient access, liquidity and transparency for investors looking to gain exposure to digital assets. Jay Jacobs, head of thematic and active ETFs at BlackRock in the US, said:
“ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”
How will the price of eth react?
While the price of eth has remained largely subdued despite the impending launch of ETFs, blockchain research firm Kaiko eth-etf-be-sell-the-news-event”>reported It was not clear how the initial inputs of the products might affect the asset.
Will Cai, director of indexes at Kaiko, said:
“The launch of futures-based eth ETFs in the US late last year was met with disappointing demand; all eyes are on the launch of the ETFs with high hopes for rapid asset accumulation. While a full demand picture may not emerge for several months, the eth price could be sensitive to early-day inflow figures.”
Meanwhile, Bitwise CIO Matt Hougan predicted that upcoming ethereum spot ETFs will propel the digital asset’s price to new all-time highs of over $5,000. He said:
“I am confident that new highs will be reached by the end of the year. And if the flows are stronger than many market analysts expect, the price could be much higher still.”
