Ether ETFs to start trading after SEC green light: money managers

Exchange-traded funds holding ether (ETH-USD) could begin trading on Monday following final approval from regulators, according to the money managers who will oversee the new ETFs.

The Securities and Exchange Commission said on Monday it gave the green light to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale and 21 Shares.

Trading could begin on Tuesday.

The moves could make ether, the world’s second-largest cryptocurrency, a potential staple in 401(k)s, IRAs and retirement plans, helping the digital asset gain more widespread acceptance.

“This is an example of Fidelity’s rich history and commitment to meeting the changing needs of our clients,” Cynthia Lo Bessette, Fidelity’s head of digital asset management, said in a press release.

The approvals come about six months after the SEC allowed many of the same money managers to issue ETFs that include Bitcoin (BTC), the world’s largest cryptocurrency.

The new development is the latest example of the crypto industry’s recent success as it pushes for friendlier regulations in Washington and greater freedom to launch new products.

This development comes just days before Republican presidential candidate Donald Trump is set to give his seal of approval during a speech at the Bitcoin 2024 conference in Nashville this weekend.

Trump and many in his party have embraced digital assets in an attempt to contrast with the Biden administration, which has cracked down on many major players in the industry following the 2022 market crash.

“Republicans will end the Democrats’ illegal and un-American cryptocurrency crackdown,” the Republican Party said in its 16-page party program last week.

FILE PHOTO: The BlackRock logo is seen outside its headquarters in Manhattan, New York, U.S., on May 25, 2021. REUTERS/Carlo Allegri/File Photo (REUTERS/Reuters)

Trump, who has called Bitcoin a “fraud” in the past, described the cryptocurrency as “wonderful” in an interview with Bloomberg last week.

The price of Bitcoin has risen more than 6 percent in the past month to nearly $68,000, pushing the world’s largest cryptocurrency close to its all-time high set earlier this year.

Ether is up more than 3% in the last five days. It has been falling in recent months and remains far from its all-time high set in November 2021.

Trading in Ether ETFs is the latest example of some prominent names on Wall Street embracing digital assets more broadly.

One of them is BlackRock CEO Larry Fink. In an interview with CNBC last week, he described Bitcoin as a “legitimate financial instrument.”

“I believe there is a role for Bitcoin in portfolios,” Fink said.

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BlackRock was among the firms that received approval to begin issuing a spot bitcoin ETF in January, marking a big gain for the first half of the year.

The company’s iShares bitcoin ETF (IBIT) saw net inflows of $18 billion in its first six months.

On Monday, iShares announced that the registration statement for the Ethereum Trust ETF (ETHA) has been filed with the SEC.

“Our clients are increasingly interested in gaining access to digital assets through exchange-traded products (ETPs) that provide easy access, liquidity and transparency,” Jay Jacobs, BlackRock’s head of U.S. thematic and active ETFs, said in a statement.

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