Ethereum ETFs get final approval to trade in the US

The US SEC has given final approval for the first spot ETH ETFs in the United States. Trading will begin tomorrow, July 23.

The U.S. Securities and Exchange Commission today, July 22, approved the securities filings of several spot Ethereum (ETH) exchange-traded funds, allowing them to begin trading as scheduled on Tuesday.

The SEC has approved ETH ETF products from a total of eight issuers, including asset management giants Fidelity, Blackrock, and VanEck, as well as 21Shares, Bitwise, and others.

The SEC first approved filings for the above ETH ETFs in late May, but the firms were waiting for their S-1 filings (registration of new securities) to be approved before trading could officially begin. Last week, the SEC notified issuers that they must complete their S-1 filings by July 17 in order to receive approval for trading to begin on July 23.

How will the price of ETH react?

A report from Kaiko Research today suggested that the outlook for the ETH price is uncertain following the launch of spot ETFs. The firm noted that demand for futures-based ETH ETFs was “insufficient” when they were launched last year.

The price of ETH is down by around 2.5% in the last 24 hours and is currently trading around $3,400. Earlier today, analysts at IntoTheBlock noted that the Ethereum price was facing critical resistance at the $3,500 level.

30-minute ETH price chart, July 15-22, 2024 | Source: crypto.news

As is the case with spot Bitcoin (BTC) ETFs in general, analysts and the broader industry view the launch of a spot ETF product as a bullish signal for wider adoption. Because ETFs trade on traditional exchanges through brokerage accounts, a wider swath of more traditional investors now have access to the two largest cryptocurrencies by market cap through a vehicle they are already comfortable trading.

First Bitcoin, now Ethereum

Spot BTC ETFs were approved for trading in the US in January and have since seen record inflows. The price of Bitcoin has increased by almost 50% since spot BTC ETF trading began in January and is currently trading close to $67,700.

4-hour BTC price chart, January 8 – July 22, 2024 | Source: crypto.news