The U.S. Securities and Exchange Commission (SEC) has granted approval for the listing of eight Ethereum cryptocurrency Exchange-Traded Funds (ETFs) on U.S. stock exchanges. These ETFs will operate alongside established digital asset fund manager Grayscale and other prominent investment firms such as BlackRock, Franklin Templeton, 21Shares, Bitwise, VanEck, Invesco Galaxy, and Fidelity.
This development marks Ethereum as the second cryptocurrency to officially debut on Wall Street, following Bitcoin’s introduction via 13 funds on January 10th. The SEC’s approval in May paved the way for Tuesday’s commencement of trading for the eight Ethereum ETFs, which are priced at $3.40 per unit.
Bitcoin’s initial trading day saw investments totaling $4.7 billion in January. By mid-July, assets under management for Bitcoin had reached $17 billion. A study by Galaxy Research projected Ethereum’s revenues could hit $1 billion within five months, with some experts suggesting potential growth to $4 billion.
Richard Teng, CEO of Binance, a leading blockchain ecosystem, anticipates capital inflows into the cryptocurrency instrument, noting that the initial impact may be tempered and subject to economic variables. Teng highlighted the significant liquidity potential now that SEC approval has formalized institutional investor participation. Ethereum’s price has risen by 35% since anticipation of formal trading, following Bitcoin’s listing on NYSE Arca and the Chicago Board Options Exchange.
Related topics:
