SEC Approves Ethereum Spot ETFs for Traditional Markets, Trading Begins

The Securities and Exchange Commission has officially approved ethereum spot exchange-traded funds, allowing investors to gain exposure to the world’s second-largest cryptocurrency through traditional markets. The ethereum ETFs began trading at market open on Tuesday.

The SEC approved a total of eight ETFs, including well-known names such as Grayscale Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), and more. Grayscale was also given approval to convert its Grayscale Ethereum Trust (ETHE) to a spot ETF.

Each of these new spot exchange funds will hold ether, the native crypto token of the ethereum network. Most of the ETFs will trade on the CBOE exchange, with some trading on the New York Stock Exchange and Nasdaq.

Coinbase will serve as the custodian for eight of the newly approved ETFs, while Fidelity will self-custody the underlying digital assets for its investment products. This move marks a significant step forward in regulatory clarity for the digital asset class.

Following the approval news, ethereum saw a slight dip to $3,450, while bitcoin traded around $66,500. Both cryptocurrencies have seen significant gains so far this year, with ethereum rallying nearly 51% and bitcoin spiking almost 58%.

Overall, the approval of ethereum ETFs is seen as a positive development for the cryptocurrency market, providing a new pathway for safe and compliant exposure to ethereum. This move is expected to drive billions in inflows from institutions and consumers alike, signaling a promising regulatory outlook for the digital asset class.