SEC Greenlights Ether ETFs in Major Win for Crypto Industry

The U.S. Securities and Exchange Commission has preliminarily approved three asset managers to launch exchange-traded funds (ETFs) tied to the spot price of ether, beginning next Tuesday. This follows the successful launch of nine U.S. spot bitcoin ETFs in January. The ether ETFs mark another major milestone for cryptocurrency acceptance and mainstream adoption.

The U.S. Securities and Exchange Commission (SEC) has given preliminary approval to at least three of the eight asset managers seeking to launch exchange-traded funds (ETFs) tied to the spot price of ether. Trading is expected to begin next Tuesday, according to three industry sources.

The approval is contingent on applicants submitting final offering documents to regulators by the end of this week. All eight asset managers are anticipated to launch their products simultaneously, one source revealed. The SEC has not yet responded to requests for comment.

This development follows the January launch of nine U.S. spot bitcoin ETFs, which represented a significant victory for the cryptocurrency industry's efforts to push digital assets into the mainstream. Ether, the world's second-largest cryptocurrency after bitcoin, is now taking a similar step. Among the companies likely to receive approval are BlackRock, VanEck, and Franklin Templeton, with trading expected to commence next Tuesday.

In late Monday trading, ether was priced at $3,433.07, up 7.1% for the day and showing a 14.4% increase over the past week. The introduction of these ETFs follows a decade-long struggle with the SEC over market manipulation concerns, culminating in a court challenge from Grayscale Investments. The bitcoin ETFs that launched in January garnered $6.6 billion in assets within the first three weeks and had amassed $33.1 billion by the end of June, according to Morningstar Direct data.

(With inputs from agencies.)