It was unexpected, but it happened.
Despite the historical approval 11 place Bitcoin Exchange Traded Funds In January, industry observers were pessimistic about the U.S. Securities and Exchange Commission (SEC) greenlighting a proposed bill. Ethereum equivalent.
But on May 23, after months of little engagement with candidates, the regulator softly said yes to products.
An exchange-traded fund (ETF) is a popular investment vehicle that trades on a stock exchange. It allows investors to buy stocks that track the price of an underlying asset, which can range from gold and foreign currencies to crypto and technology stocks.
The approval of Ethereum spot ETFs, just like the Bitcoin these mean that fund managers can take charge of buying and storing ETH digital coins, and people can buy stocks that track their value. This will give people exposure to the second largest cryptocurrency by market capitalization.
Several prestigious financial companies have received the green light from the SEC. They still need to complete a bit more paperwork before the funds start trading, but the products are expected to be listed on the exchange this year.
Here are the ETH ETFs that will soon hit the markets.
black rock
BlackRock, the world's largest asset manager, got the green light for its iShares Ethereum Trust. It's first deposit an S-1 form for the product in November.
The company's CEO, Larry Fink, appears to be excited about the cryptocurrency and its network. said that there is “value in having an Ethereum ETF”. He also spoke of “tokenization” as inevitable.
Shades of grey
Crypto asset manager Grayscale got yes from SEC after deposit a proposal in October to convert its Grayscale Ethereum Trust into a spot Ethereum ETF.
The current trust currently operates as a closed-end fund. But when traded as an ETF, investors will be able to easily redeem their shares. It is Bitcoin Trust converted to an ETF in January, so there is already precedent for how such a crypto vehicle can transition to a spot ETF.
Grayscale is a big part of why Bitcoin ETFs are currently trading in the United States. In a historic moment for the crypto industry last year, a judge on the company side in a lawsuit, agreeing with the company that Wall Street's top regulator lacked a coherent explanation for denying its Bitcoin ETF conversion proposal after years of refusal.
The decision paved the way for the SEC to greenlight the detection of Bitcoin ETFs.
Ark Invest/21Actions
ARK Invest, Cathie Wood's leading technology investment management firm, deposit a proposal with the SEC for an Ethereum ETF in September.
The ETF is partnered with crypto ETF issuer 21Shares and names Coinbase, America's largest digital asset exchange, as its custodian, meaning the recognized company would hold and store the ETH in the product .
loyalty
Financial services giant Fidelity made it clear it wanted to abandon an Ethereum ETF in November when Cboe – the exchange where the product would trade –deposit a 19b-4 in the name of the company.
Then, in March, the major company filed its S-1 with the SEC for its Fidelity Ethereum fund.
VanEck
Asset manager VanEck was the first fund manager to deposit a proposal for an Ethereum ETF with the SEC in 2021. Later that year withdrew his proposal and has since filed again.
The company's Bitcoin ETF has been a successful product, and VanEck even renounced its fees to better compete with other funds on the market.
Hashdex
The Nasdaq in September deposit a proposal on behalf of Brazilian fund manager Hashdex for its Hashdex Nasdaq Ethereum ETF.
Hashdex already owns several crypto ETFs in Brazil. In the United States, its Hashdex Bitcoin ETF received the green light from the SEC in January and began trading in March.
Franklin Templeton
Wall Street giant Franklin Templeton entered the race in February when he deposit a proposal with the SEC. The company's Franklin Bitcoin ETF launched earlier this year and trades under the ticker EZBC.
Invesco/Digital Galaxy
Asset management giant Invesco submitted a proposal with Mike Novogratz's Galaxy Digital for an ETH ETF in September. THE Form S-1 mentions that Invesco would be the sponsor of the product, while Galaxy Digital would work as an “execution agent” by selling ETH to pay expenses of the Invesco Galaxy Ethereum ETF.
Bitwise
Digital asset investment company Bitwise deposit It is Form S-1 with the SEC to propose a Spot Ethereum ETF in March.
Matt Hougan, chief investment officer at Bitwise, said that he expects ETH ETFs to launch in December and predicted they would be more successful anyway if approved later in the year. We'll have to see when they actually launch at this point, after approval in May.
Edited by Andrew Hayward
Editor's Note: This story was originally published on May 11, 2024 and last updated with new details on May 26.
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