Key points
- ethereum spot ETFs will begin trading on July 23, 2024, following SEC approval.
- Major financial institutions such as Grayscale and Fidelity are about to launch these ETFs.
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The US Securities and Exchange Commission (SEC) has given the green light to the launch of multiple ethereum spot exchange-traded funds (ETFs), with trading scheduled to begin on July 23, 2024.
<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true” wp_automatic_readability=”9.297619047619″>
It's official: SEC has made Spot eth ETFs effective. 424(b) forms are already coming in, last step = all set for tomorrow's launch at 9:30am. Game on! photo.twitter.com/9MaBDBA8co
— Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1815489137484722333?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>July 22, 2024
The SEC’s decision comes after a lengthy review process, initially hesitant due to concerns about ethereum’s securities classification and the complexities of staking. However, the landscape changed following a successful court challenge by Grayscale Investments in August 2023, which argued for ethereum ETFs alongside bitcoin ones.
Several financial institutions, including Grayscale Investments, Fidelity Investments, Invesco, VanEck, Franklin Templeton, 21Shares, Bitwise, and iShares (BlackRock), are set to launch their ethereum spot ETFs on platforms such as NYSE Arca and Chicago Board Options Exchange (CBOE).
What are ethereum spot ETFs?
ethereum spot ETFs differ significantly from futures-based ETFs that have been available in the U.S. market since October 2023. While futures ETFs provide exposure to Ether futures contracts, spot ETFs directly track the price of ethereum, offering a simpler investment option for those seeking exposure to Ether.
The approval and launch of ethereum spot ETFs is expected to have far-reaching implications for the broader crypto ecosystem. Analysts predict that these funds could attract billions of dollars in inflows in the coming months, potentially pushing up the price of eth and boosting the value proposition of the entire ethereum network.
How ethereum ETFs Came to Be
This final approval comes after weeks of collaboration between ETF issuers and the SEC to finalize disclosure documents. The regulator had previously approved the 19b-4 proposals filed by the exchanges in May, which laid the groundwork for these funds to go public.
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