Exchange-Traded Funds Holding Ether Begin Trading After SEC Approval

Exchange-traded funds that hold ether (ETH-USD) began trading on Tuesday after receiving final approval from regulators. However, despite the debut, ether prices dropped 1.5% in afternoon trading.

The Securities and Exchange Commission gave the green light to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale, and 21 Shares to launch ETFs that hold ether. This move could potentially make ether, the world’s second-largest cryptocurrency, a staple in retirement accounts and grant the digital asset more mainstream acceptance.

Fidelity’s head of digital asset management, Cynthia Lo Bessette, expressed excitement about meeting the evolving needs of customers through this new offering.

This approval comes on the heels of similar approvals for ETFs that hold bitcoin, the world’s largest cryptocurrency. The crypto industry has been gaining traction in Washington, with the recent success in pushing for friendlier regulations and the freedom to launch new products.

The news also comes ahead of Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, where he is expected to offer his support for digital assets. Trump and many in the GOP have embraced cryptocurrencies as they seek to differentiate themselves from the Biden administration’s crackdown on the industry following a market meltdown in 2022.

Despite Trump’s past criticism of bitcoin as a “scam,” he recently referred to cryptocurrencies as “amazing” in an interview with Bloomberg. The price of bitcoin has been on the rise, nearing an all-time high, while ether has seen a slight decline in recent months.

Overall, the approval of ether ETFs and the growing acceptance of cryptocurrencies signal a shift in the financial landscape, with digital assets becoming more integrated into traditional investment portfolios.