Synopsis
Regulatory authorities have granted permission to at least two out of eight firms, including BlackRock and VanEck, to introduce their Ethereum (ETH) Exchange Traded Funds (ETFs). The ETFs are set to be traded on three major exchanges — Cboe, Nasdaq, and NYSE. Ether (ETH) is the native cryptocurrency of the Ethereum network, which holds the second-largest market capitalization in the crypto world.
Spot Ether exchange-traded funds (ETFs) will begin trading on Tuesday following final approval from the US Securities & Exchange Commission (SEC).
At least two of the eight firms that applied, including BlackRock and VanEck, have been authorised to launch their products. These ETFs will be available on three major exchanges Cboe, Nasdaq, and NYSE all ready for the debut.
Ether (ETH) is the underlying cryptocurrency of the Ethereum network, which is the second-largest crypto network when measured by market cap.
Crypto Tracker
TOP COIN SETSAI Tracker4.25% BuyBTC 50 :: ETH 501.23% BuySmart Contract Tracker0.43% BuyNFT & Metaverse Tracker-1.73% BuyWeb3 Tracker-4.73% BuyTOP COINS (₹) Tether84 (0.07%)BuyEthereum288,635 (-1.12%)BuyBitcoin5,575,917 (-1.33%)BuySolana14,653 (-2.16%)BuyBNB48,710 (-2.4%)BuyRaj Karkara, COO of ZebPay, highlighted the significance of this approval, stating, “The approval of Spot Ethereum ETFs is a landmark win for the crypto industry and the democratisation of finance and technology. It symbolises a maturing market and regulatory support, which is crucial for long-term growth.”
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View Details »Pankaj Balani, CEO & Co-Founder of Delta Exchange, said, “The impending ETH ETF approval can act as a positive catalyst for the market here and some recovery can be expected around that announcement. Having said that, the transaction volume on ETH L1 blockchain has slowed down as the activity has shifted to L2s and other chains such as Solana. Overall, traders are not expecting the ETF to see as many flows as the BTC ETF did.”
With the introduction of ETFs and upcoming network upgrades, now the question remains: Can Ethereum reach $5,000 by the end of 2024?
“The current momentum and market developments suggest it is well-positioned to sustain and potentially continue its upward rally,” said Sumit Gupta is Co-founder, CoinDCX.
“With the introduction of Bitcoin and ETH ETFs, the floodgates have opened for more crypto exchange-traded products, including the potential for a Solana-based ETF. This surge in Crypto ETFs marks a shift in perception, transitioning crypto from being perceived solely as a speculative asset to becoming a foundational element of investment portfolios. The increased involvement of financial institutions adds further credibility to crypto assets,” said Sumit Gupta.
At 10:37 am IST, Ethereum was trading 1.7% lower at $3,450.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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