SEC Approves Spot Ethereum ETF Applications
The US Securities and Exchange Commission has given the green light to several spot Ethereum ETF applications, opening the door to institutional investment in the second-largest cryptocurrency.
The US Securities and Exchange Commission has approved applications for spot Ethereum exchange-traded funds from several major asset managers, a decision that follows the January 2024 approvals for spot Bitcoin ETFs.
Which funds were approved
The SEC gave the go-ahead to funds from BlackRock, Fidelity, Invesco, and three other applicants. Trading is expected to begin within the coming weeks, subject to final registration processes.
Why this matters
Spot ETFs allow traditional investors to gain exposure to Ethereum without needing to hold the cryptocurrency directly. This is seen as a significant step toward mainstream adoption, as it removes technical barriers such as setting up wallets and managing private keys.
The approval also signals a shift in regulatory tone following years of uncertainty around cryptocurrency products in the United States.
How is Ethereum different from Bitcoin
While Bitcoin is primarily viewed as a store of value, Ethereum serves as a programmable blockchain platform. It underpins a vast ecosystem of decentralised applications, NFT marketplaces, and DeFi protocols. Ether, its native token, is used to pay for transactions and computational work on the network.
For a deeper explanation, read our guide: What is Ethereum and how does it work?
Market reaction
Ethereum’s price rose approximately 12% in the 24 hours following the announcement, briefly touching $4,100 before retreating to around $3,850. Trading volumes across major exchanges spiked to their highest level in several months.