Ethereum ETFs Approved by SEC

SEC Approves Ethereum ETFs

Ethereum exchange-traded funds are set to start trading in the US markets 24 July, following May approval by the US Securities and Exchange Commission and a final sign-off from the agency earlier 23 July.

These ETFs will open doors for investors to a handful of shares that track the price of Ethereum ($ETH), a state now facilitating traditional investors in investing in Ethereum ($ETH) without going for the crypto coin.

It is reported that applications from big names, such as 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, filed for an ETF offering exposure to Ethereum ($ETH) and were approved by the SEC today. Grayscale's Trust and Mini Trust are likely to be granted final approval by 23 July before trading begins.

Why is this important?

The approval of these spot Ethereum ETFs facilitates the ease with which people can invest in Ethereum ($ETH). This is in comparison to before, when the act of investing in cryptocurrencies mostly involved unregulated exchanges and managing digital wallets, which could be more user-friendly for most traditional investors. These new ETFs provide a more regulated and easier route to investment, reducing barriers to entry.

This may also turn out attractive to big institutional investors who have, all along, been scared due to uncertainties in regulations. Experts believe that such ETFs could increase demand for Ethereum ($ETH), thus impacting the cryptocurrency's price and liquidity.

The ruling of the SEC could further open up the possibility of more cryptocurrency-related financial products getting approved. On the whole, these ETFs make investing in Ethereum very easy and secure, without really holding the cryptocurrency.