Unlock the Editor’s Digest for free: SEC paves way for potential launch of ether ETFs

The US Securities and Exchange Commission has made a groundbreaking decision that could potentially change the landscape of cryptocurrency investing. The regulator has paved the way for the launch of eight exchange traded funds tied to ether, the native cryptocurrency of the ethereum blockchain, following the approval of the first bitcoin ETFs earlier this year.

This move has sparked widespread anticipation and excitement in the crypto community, leading to a surge in ether’s price by more than 20% since Monday and over 60% year-to-date. The approval of these ETFs will provide US investors with easier access to ethereum and offer higher protection and safeguards.

SEC chair Gary Gensler, who has been cautious about allowing crypto investment products on the US market, cited concerns about fraud and non-compliance with US law in the industry. Despite these challenges, the approval of ether ETFs marks a significant regulatory shift for the SEC after months of silence on the issue.

Investment firms such as BlackRock, Fidelity, Invesco, and Ark Invest are among the groups that have received approval for ETFs investing in ether. However, a second round of approvals will be needed before these products can officially launch.

The crypto industry has faced its fair share of challenges, with high-profile cases of fraud and scams affecting prominent figures in the field. The SEC’s decision to approve ether ETFs signals a potential turning point in the regulation of cryptocurrency investments in the US market.

As the crypto market continues to evolve and expand, the approval of ether ETFs could open up new opportunities for investors looking to diversify their portfolios. Stay tuned for further updates on the launch of these groundbreaking investment products.