The US Securities and Exchange Commission (SEC) approves ETH ETFs, providing final confirmations for the S-1 applications submitted by multiple issuers. The products can trade as soon as today. This move was highly anticipated by the crypto community, with many rejoicing it.
It follows the SEC approving BTC ETFs in January, which was unbelievable to many back then. The feeling was mutual toward ETH ETFs just some weeks ago. However, there was confirmation when SEC chair Gary Gensler stated that his agency would approve it this summer.
As ETH gets offered through products issued by investment banks, a broad range of investors will now take the leap into the wealth generation capabilities of the second largest cryptocurrency. The doubts they held about the asset type, storing it, and more should no longer worry them. And that is the precise case with BTC ETFs. Tens of billions of dollars have made their way into the products offered by 11 financial houses.
BlackRock, Fidelity, VanEck, 21Shares, Invesco Galaxy, Bitwise, and Franklin Templeton have received approval from the SEC. The others may have also received it but have not confirmed it yet or are in the process of gaining it, which may occur anytime now. Nevertheless, ProShares is taking the final S-1 application submission at its own pace and will begin trading at a later date.
As these issuers offer their products and pump funds from new avenues into the asset, ETH’s price action can take a new form. That is what occurred with BTC, as the anticipation for ETFs of the asset launching and its being offered triggered enormous price movements, taking BTC and the rest of the crypto market out of a severe bear cycle. ETH can expect the same, reaching price points it has never grown to before.
Matt Hougan, Bitwise’s Chief Investment Officer, said, “We’ve now fully entered the ETF era of crypto.” He continued, “Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs.”
