The Securities and Exchange Commission late Monday gave official approval for ethereum spot exchange-traded funds, giving investors exposure to the world's second-largest cryptocurrency via traditional markets. The ethereum ETFs began trading at market open on Tuesday.
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The SEC approved eight ETFs, including the Grayscale Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), Bitwise Ethereum ETF (ETHW), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), BlackRock's (BLK) iShares Ethereum Trust (ETHA) and the Invesco Galaxy Ethereum ETF (QETH).
The SEC also approved Grayscale to convert its Grayscale Ethereum Trust (ETHE) to a spot ETF, Bloomberg analysts James Seyffart and Eric Balchunas reported.
Each of the new spot exchange funds will hold ether, the crypto token native to the ethereum network. The entrants also launched spot bitcoin ETFs in early January.
Most of the new ETFs will trade on the CBOE exchange, according to Bloomberg. The Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust and the Bitwise Ethereum ETF will trade on the New York Stock Exchange. The iShares Ethereum Trust will list on the Nasdaq.
Coinbase (COIN) will serve as the custodian for eight of the newly approved ETFs. The crypto exchange also serves as the custodian for a majority of the bitcoin ETFs.
Fidelity will self-custody the underlying digital assets for its new investment products, and it is the only issuer with the capability to do so, according to Fidelity.
"The launch of spot Ethereum ETFs marks a major step forward in regulatory clarity for the digital asset class. Between the rise of spot crypto ETFs and legislative progress in Congress, the regulatory outlook today is the most promising it has been in recent memory," said Nathan McCauley, CEO of federally chartered digital asset bank Anchorage Digital. "The ETF wrapper will provide a new pathway for safe and compliant exposure to ethereum, driving billions in inflows from institutions and consumers alike."
Ethereum ETF Price Action
Ethereum ticked lower slightly to $3,480 by Tuesday afternoon. The cryptocurrency initially eased late Monday following the approval news, which was expected.
Ethereum rallied nearly 52% so far this year.
Bitcoin traded around $65,600 late Tuesday, sliding about 3.7% over the last 24 hours, CoinDesk data shows. Bitcoin has spiked about 56% in 2024.
Coinbase weakened 2.8% Tuesday. COIN stock is consolidating with a 283.48 buy point. Shares leapt 48% so far this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter@IBD_Harrison
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