New York, July 22, 2024 – The U.S. Securities and Exchange Commission yesterday approved the first spot ethereum exchange traded funds, marking another significant milestone for cryptocurrency enthusiasts following the earlier introduction of bitcoin ETFs this year.
The ether ETFs include the conversion of a $9.3 billion Grayscale Investments trust and new offerings from bitcoin ETF giants BlackRock and Fidelity.
The approval was granted on Monday, July 22, with trading set to start on the following day, according to fund sponsors.
The SEC did not immediately respond. Nor had it published any media statements regarding this so far.
Ether, the native cryptocurrency of the ethereum blockchain, holds the second-largest market cap in the crypto world at approximately $415 billion.
These approvals build on the momentum from last year’s launch of ether futures ETFs and give cryptocurrencies a stronger presence in traditional U.S. finance following the debut of the first U.S. spot bitcoin ETFs in January.
As with bitcoin ETFs, ethereum ETF issuers are competing for investor interest with competitive fees.
According to Bloomberg Intelligence, final expenses for all but one product will be below 0.25 percent, with at least five issuers initially waiving fees.
Grayscale Investments, however, will maintain a 2.5 percent management fee for its large converted ethereum ETF while launching a smaller version with a 0.15 percent fee, according to a report filed by the Financial Times.1
- https://www.ft.com/content/f36d7eeb-03d6-4dab-909a-d5d4524a4edb[↩]
