The US Securities and Exchange Commission has given the final green light to Ethereum exchange-traded funds (ETFs) in the US. Trading is set to begin tomorrow, July 23.
Today, July 22, the US Securities and Exchange Commission announced I accepted Ethereum (ETH) exchange-traded funds (ETFs) have begun offering their securities, in preparation for trading starting Tuesday, as scheduled.
The SEC has approved ETH ETF products from a total of eight issuers, including asset management giants Fidelity, Blackrock, and VanEck, as well as 21Shares, Bitwise, and others.
The SEC approved the aforementioned ETF applications in late May, but the companies were still waiting for their S-1 filings — the registration of new securities — to be approved before they could officially begin trading. Last week, the SEC informed issuers that they would need to have their S-1 filings completed by July 17 in order to get approval to begin trading on July 23.
How will the price of ETH react?
The outlook for ETH price after the launch of spot ETFs is unclear, according to a report from Kaiko Research today. The firm noted that when ETH futures-based ETFs were launched last year, demand was “disappointing.”
ETH price has dropped by around 2.5% in the past 24 hours and is currently trading at $3,400. Earlier today, analysts from IntoTheBlock suggested that Ethereum price is facing critical resistance at $3,500.
Overall, as with the spot Bitcoin (BTC) ETFs, analysts — and the industry more broadly — see the launch of the spot ETF product as a bullish sign of broader adoption. Because ETFs are traded on traditional exchanges via brokerage accounts, a broader swath of more traditional investors now have access to the two largest cryptocurrencies by market cap through a medium they already feel comfortable trading.
First Bitcoin, now Ethereum
Spot Bitcoin ETFs were approved for trading in the United States in January, and have sinceCryptocurrency markets have seen record inflows. Since the launch of Bitcoin ETFs, the price of Bitcoin has risen by around 50%, currently trading at $67,700.
