Exchange-traded funds (ETFs) holding ether (ETH-USD) received final regulatory approval on Monday, allowing trading to commence, according to the money managers overseeing these new ETFs. The Securities and Exchange Commission (SEC) has authorized firms including BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale, and 21 Shares to launch these funds, with trading potentially starting as early as Tuesday.
This development marks a significant milestone for ether, the world’s second-largest cryptocurrency, potentially paving the way for its inclusion in 401(k)s, IRAs, and pension plans, thereby granting the digital asset broader mainstream acceptance.
“This is exemplary of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” stated Cynthia Lo Bessette, Fidelity’s head of digital asset management, in a press release.
The approvals arrive approximately six months after the SEC allowed many of these same money managers to introduce ETFs holding bitcoin (BTC), the largest cryptocurrency globally. This new wave of approvals is the latest indication of the crypto industry’s growing success in advocating for more favorable regulations and the freedom to launch innovative products.
This regulatory advancement occurs just days before Donald Trump, the Republican nominee for president, is scheduled to address the Bitcoin 2024 conference in Nashville. Trump, along with many in his party, has increasingly embraced digital assets, positioning themselves in contrast to the Biden administration, which has led a crackdown on key industry players following a significant market downturn in 2022.
Despite previously labeling bitcoin a “scam,” Trump recently referred to cryptocurrencies as “amazing” in an interview with Bloomberg. Over the past month, the price of bitcoin has surged over 6%, reaching approximately $68,000, nearing its all-time high set earlier this year. Ether has also seen a rise, gaining more than 3% in the last five days, although it remains significantly below its all-time high from November 2021.
The introduction of ether ETFs exemplifies the growing acceptance of digital assets by prominent Wall Street figures. BlackRock CEO Larry Fink recently described bitcoin as a “legitimate financial instrument” in a CNBC interview, highlighting his belief in its role within investment portfolios. BlackRock’s foray into the crypto market began with the approval of a spot bitcoin ETF in January, which significantly boosted its performance in the first half of the year. The firm’s iShares bitcoin ETF (IBIT) attracted $18 billion in net inflows during its initial six months.
On Monday, BlackRock announced that the SEC had declared its registration statement for the iShares Ethereum Trust ETF (ETHA) effective. Jay Jacobs, BlackRock’s head of US thematic and active ETFs, noted, “Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) which provide convenient access, liquidity, and transparency.”
This move signifies a notable step toward the integration of digital assets into traditional financial portfolios, highlighting the evolving landscape of the cryptocurrency market and its increasing legitimacy in the eyes of both regulators and investors.
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