Ether ETFs to start trading following green light from SEC: money managers

Exchange-traded funds that hold ether (ETH-USD) can start trading following final approval from regulators on Monday, according to the money managers that will oversee the new ETFs.

The Securities and Exchange Commission gave the green light Monday to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale and 21 Shares, the companies said.

Trading could begin as early as Tuesday.

The moves could make ether, the world’s second-largest cryptocurrency, a potential staple in 401(k)s, IRAs, and pension plans and grant the digital asset more mainstream acceptance.

“This is exemplary of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” Fidelity’s head of digital asset management, Cynthia Lo Bessette, said in a press release.

The approvals come roughly six months after the SEC permitted many of these same money managers to launch ETFs that hold bitcoin (BTC), the world’s largest cryptocurrency.

The new development is the latest example of the recent success the crypto industry is having in Washington as it pushes for friendlier regulation and greater freedom to launch new products.

It comes just days before the Republican nominee for president, Donald Trump, offers his stamp of approval when he speaks before the Bitcoin 2024 conference in Nashville this weekend.

Trump and many in his party have embraced digital assets as they seek to draw a contrast with the Biden administration, which led a crackdown on many of the industry’s major players following a market meltdown in 2022.

The GOP said in its 16-page party platform last week that “Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown.”

Trump, who in the past has called bitcoin a “scam,” referred to cryptocurrencies as “amazing” in an interview with Bloomberg published last week.

The price of bitcoin is up more than 6% over the past month to roughly $68,000, putting the world’s largest cryptocurrency within striking distance of an all-time high set earlier this year.

Ether is up more than 3% for the last five days. It has traded down in recent months and remains far off its all time high set in November 2021.

The trading of ether ETFs is the latest example of wider public acceptance of digital assets by some prominent figures on Wall Street.

One such figure is BlackRock CEO Larry Fink, who last week in an interview with CNBC referred to bitcoin as a “legitimate financial instrument.”

“I’m a major believer that there is a role for bitcoin in portfolios,” Fink said.

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BlackRock was among the firms that received approval in January to start issuing a spot bitcoin ETF, which turned out to be a major boon for its first half of the year.

Its iShares bitcoin ETF (IBIT) saw $18 billion in net inflows over its first six months.

On Monday it said its registration statement for iShares Ethereum Trust ETF (ETHA) had been declared effective by the SEC.

“Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) which provide convenient access, liquidity and transparency,” Jay Jacobs, BlackRock’s head of US thematic and active ETFs, said in a statement.

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