SEC approves spot-Ether ETFs, according to filings

SEC approves spot-Ether ETFs, according to filings
Regulator yet to confirm but asset managers acknowledge latest crypto milestone.
JUL 22, 2024
By  Bloomberg

US regulators were seen approving the first exchange-traded funds that invest directly in Ether, the world’s second-largest cryptocurrency, in the latest boost to the $2.4 trillion digital-asset industry.

The Securities and Exchange Commission signed off on spot-Ether ETF applications from 21Shares, Bitwise Asset Management Inc., BlackRock Inc., Invesco Ltd. Franklin Templeton, Fidelity Investments and VanEck, according to regulatory filings as well as statements from asset managers on Monday. 

The SEC didn’t immediately return requests for comment. 

The development paves the way for the imminent trading of the products. It’s been heralded by industry proponents as the latest sign that policymakers are capitulating to the virtual-currency boom after the success of US-listed Bitcoin ETFs, which have gathered billions of dollars from retail and institutional investors alike since January. 

It all marks a softening in the regulatory climate after fund issuers were bracing for a rejection earlier this year. But optimism for approval suddenly rose in May, when the SEC signed off on filings by venues including Cboe Global Markets Inc., Nasdaq and the New York Stock Exchange to list the products. 

Several issuers including BlackRock and Fidelity are waiving fees for an extended period of time once their funds begin trading.

Ether, the native token of the Ethereum blockchain, is up more than 50% year to date.  

“Our clients are increasingly interested in gaining exposure to digital assets through exchange-traded products (ETPs) which provide convenient access, liquidity and transparency,” said Jay Jacobs, US head of thematic and active ETFs at BlackRock, in a statement. “Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”

In late June, VanEck submitted a filing for a product investing in Solana, the fifth-biggest cryptocurrency by market value, another attempt by ETF issuers to ride demand for digital assets.

New spot bitcoin ETF offers advisors wide range of opportunities, says VanEck strategist

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.