The U.S. Securities and Exchange Commission (SEC) has granted approval to at least three asset managers to launch their Ether Exchange Traded Funds (ETFs) for trading by next week i.e. July 23.
The approval of ether ETFs marks another major milestone for mainstreaming digital assets in the cryptocurrency industry, following a decade-long regulatory battle and revised market manipulation concerns post the successful January launch of spot bitcoin ETFs.
According to Reuters, among the eight asset managers, three of them to get SEC approval are BlackRock, VanEck, and Franklin Templeton.
Martin Leinweber, digital asset product strategist at MarketVector Indexes, anticipates initial ETF inflows to be more modest compared to bitcoin, citing ether’s smaller market size and trading volumes. Despite these differences, market analysts remain optimistic about the potential of ether ETFs to attract significant investor interest.
Thomas Perfumo, head of strategy at Kraken crypto exchange, noted that while ether’s market size is smaller than bitcoin’s, successful ETF inflows could still make a meaningful impact.
Industry executives initially skeptical after discouraging meetings with SEC officials in September have seen the approval process for ether ETFs paved by recent rule changes and a favorable regulatory environment.
SEC Chair Gary Gensler’s decision-making process for ether ETFs was influenced by past rulings, particularly Grayscale Investments, as the cryptocurrency market anticipates their launch with cautious optimism about their impact.
Also Read: Ethereum Could Outperform Bitcoin with Upcoming ETF Launch: Kaiko
