Finance
Ether ETFs Begin Trading After Green Light from the SEC: Money Managers
Exchange-traded funds that hold ether (ETH-USD) can begin trading on Monday after final approval from regulators, according to the money managers who will oversee the new ETFs.
The Securities and Exchange Commission on Monday gave the green light to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale and 21 Shares, the companies said.
Trading could start as early as Tuesday.
These moves could help ether, the world’s second-largest cryptocurrency, become a potential staple of 401(k)s, IRAs and retirement plans, and the digital asset gain more mainstream adoption.
“This is an example of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” Cynthia Lo Bessette, head of Digital Asset Management at Fidelity, said in a press release.
The approvals come about six months after the SEC allowed many of these same money managers to launch ETFs containing bitcoin (BTC), the world’s largest cryptocurrency.
The new development is the latest example of the crypto industry’s recent success in Washington as it pushes for friendlier regulations and greater freedom to launch new products.
It comes just days before Republican presidential nominee Donald Trump gives his stamp of approval when he speaks before the Bitcoin 2024 conference in Nashville this weekend.
Trump and many in his party have embraced digital assets in their effort to draw a contrast with the Biden administration, which led a crackdown on many of the sector’s key players following the 2022 market collapse.
The Republican Party said this last week in its sixteen-page party platform “Republicans will put an end to Democrats’ illegal and unAmerican Crypto crackdown.”
Trump, who has called bitcoin a ‘scam’ in the past, called cryptocurrencies ‘great’ in an interview with Bloomberg published last week.
The price of bitcoin has risen more than 6% over the past month to around $68,000, putting it within striking distance of an all-time high set earlier this year.
Ether is up more than 3% in the past five days. The price has fallen in recent months and remains far from the all-time high of November 2021.
Trading in ether ETFs is the latest example of broader public adoption of digital assets by some prominent figures on Wall Street.
One such figure is BlackRock CEO Larry Fink, who in an interview with CNBC last week called Bitcoin a “legitimate financial instrument.”
“I’m a big believer in bitcoin having a role in wallets,” Fink said.
BlackRock was among the companies that received approval in January to begin issuing a spot bitcoin ETF, which turned out to be a major boon for the first half of the year.
The iShares bitcoin ETF (IBIT) saw net inflows of $18 billion in its first six months.
On Monday, it said the registration statement for iShares Ethereum Trust ETF (ETHA) had been declared effective by the SEC.
“Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) that provide easy access, liquidity and transparency,” said Jay Jacobs, BlackRock’s head of U.S. thematic and active ETFs, in a statement declaration.
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