SEC Greenlights Spot Ethereum ETFs: Trading Set to Begin July 23

Spot Ethereum exchange-traded funds (ETFs) have received final approval from the U.S. Securities and Exchange Commission (SEC), paving the way for trading to commence on July 23, 2024. This landmark decision marks a significant milestone for the cryptocurrency industry, following the successful launch of spot Bitcoin ETFs earlier this year.

The SEC has given the go-ahead to registration statements from several major financial institutions, including BlackRock, Fidelity, Grayscale, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy. These ETFs will be listed on various exchanges, including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange.

Most of the approved ETFs will offer competitive base fees ranging from 0.15% to 0.25%, with some issuers waiving fees for initial periods or until certain asset thresholds are reached. This move is expected to attract significant investor interest, although analysts predict inflows may be more modest compared to Bitcoin ETFs.

The approval of these ETFs comes at a time of political uncertainty, with some analysts viewing recent developments in the U.S. presidential race as potentially favorable for crypto assets. This regulatory green light is seen as another step towards mainstream adoption of cryptocurrencies.

Looking ahead, the industry is already considering potential enhancements to these products, such as the inclusion of staking components or the introduction of options trading. While these features were not included in the initial approvals, experts believe it’s a matter of “when, not if” such additions will be permitted.