SEC approves spot-Ether ETFs, according to filings

SEC approves spot-Ether ETFs, according to filings
Regulator yet to confirm but asset managers acknowledge latest crypto milestone.
JUL 22, 2024
By  Bloomberg

US regulators were seen approving the first exchange-traded funds that invest directly in Ether, the world’s second-largest cryptocurrency, in the latest boost to the $2.4 trillion digital-asset industry.

The Securities and Exchange Commission signed off on spot-Ether ETF applications from 21Shares, Bitwise Asset Management Inc., BlackRock Inc., Invesco Ltd. Franklin Templeton, Fidelity Investments and VanEck, according to regulatory filings as well as statements from asset managers on Monday. 

The SEC didn’t immediately return requests for comment. 

The development paves the way for the imminent trading of the products. It’s been heralded by industry proponents as the latest sign that policymakers are capitulating to the virtual-currency boom after the success of US-listed Bitcoin ETFs, which have gathered billions of dollars from retail and institutional investors alike since January. 

It all marks a softening in the regulatory climate after fund issuers were bracing for a rejection earlier this year. But optimism for approval suddenly rose in May, when the SEC signed off on filings by venues including Cboe Global Markets Inc., Nasdaq and the New York Stock Exchange to list the products. 

Several issuers including BlackRock and Fidelity are waiving fees for an extended period of time once their funds begin trading.

Ether, the native token of the Ethereum blockchain, is up more than 50% year to date.  

“Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) which provide convenient access, liquidity and transparency,” said Jay Jacobs, US head of thematic and active ETFs at BlackRock, in a statement. “Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”

In late June, VanEck submitted a filing for a product investing in Solana, the fifth-biggest cryptocurrency by market value, another attempt by ETF issuers to ride demand for digital assets.

New spot bitcoin ETF offers advisors wide range of opportunities, says VanEck strategist

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.