The U.S. Securities and Exchange Commission (SEC) has granted approval for exchange-traded funds (ETFs) holding Ethereum, the world's second-largest cryptocurrency. Trading is expected to commence as early as Tuesday, marking another milestone for the $2.4 trillion digital asset industry.
Ethereum Spot ETFs Launching Tuesday
Per regulatory filings and company announcements, the SEC has officially approved Ethereum spot ETF applications from multiple firms. Key issuers include:
- 21Shares
- Bitwise Asset Management
- BlackRock
- Franklin Templeton
- Fidelity Investments
- VanEck
- Invesco
While awaiting final authorization, analysts project these funds will go live on July 23.
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Regulatory Green Light
Bloomberg ETF analyst Eric Balchunas noted: "Spot Ethereum ETFs are effective with the SEC. The submission of Form 424(b) filings—the final step—indicates trading could begin tomorrow at 9:30 AM ET."
This decision follows the overwhelming success of Bitcoin ETFs earlier this year, which attracted billions in inflows after January approvals. The SEC's unexpected engagement with issuers in late May signaled this outcome, culminating in a critical filing approval on May 23.
Market Expectations
Ethereum ETFs debut approximately six months after Bitcoin ETFs, which saw record-breaking adoption:
- $16B+ net inflows since January launch
- iShares Bitcoin Trust (IBIT) leading inflows
Analysts project more modest figures for Ethereum:
- $4.8B–$6.4B in first 100 days (vs. Bitcoin's $13.8B)
- Potential $15B within 18 months (Bitwise forecast)
Investor Sentiment
Tim Rice, CEO of Coin Metrics, observes:
"Many wealth managers allocated crypto exposure via Bitcoin ETFs earlier this year without anticipating Ethereum's rapid approval. This may temper initial demand."
Tax considerations also play a role—investors are unlikely to reallocate between ETF types due to short-term capital gains implications.
FAQ Section
Q: When do Ethereum ETFs start trading?
A: Trading begins Tuesday, July 23, post-market open.
Q: Which firms offer approved Ethereum ETFs?
A: Major issuers include BlackRock, Fidelity, VanEck, and Invesco.
Q: How do Ethereum ETFs differ from Bitcoin ETFs?
A: They track ETH instead of BTC, with generally lower projected inflows.
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Q: Why might Ethereum ETF inflows be smaller?
A: Many investors already maxed crypto allocations via Bitcoin ETFs earlier this year.
Q: What was the key regulatory milestone?
A: SEC's May 23 approval of the 19b-4 filing paved the way for final signoffs.