SEC gives final approval for Ethereum ETFs to begin trading
|- The SEC has approved the issuance of spot Ethereum ETFs, which will begin trading tomorrow as per the latest filings on its website.
- Grayscale Ethereum Trust has sent about $1.1 billion worth of ETH to Coinbase Institutional.
- BlackRock says Ethereum's appeal lies in its potential to drive digital transformation in finance.
The Securities and Exchange Commission (SEC) approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website. The approval is also visible across the websites of the various asset managers that applied for the product.
The SEC approved ETH ETF issuers' 19b-4 filings on May 23, but they needed to greenlight their S-1s before the products went live.
Following the final approval, issuers have started making moves as the products are set to begin trading on exchanges tomorrow:
- According to Whale Alert, the Grayscale Ethereum Trust transferred about $1.1 billion in ETH to Coinbase Institutional. This is likely the 10% it planned to shift to its Ethereum Mini Trust. Unlike its Ethereum Trust, which is the most expensive ETH ETF with a 2.5% fee, Grayscale plans to reduce potential outflows and attract investors by placing its Ethereum Mini Trust fees at 0.15% — the lowest among ETH ETF issuers.
- Many analysts predict that the Mini Trust is a new variable that could help the overall net flows across the ETH ETF landscape.
- In its latest press release, trillion-dollar asset manager BlackRock stated that "Ethereum's appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries."
- Meanwhile, analysts have predicted that ETH ETFs could attract around $3 billion to $5 billion in inflows within the first six months of launch. Most traders expect the inflows to trigger a price rally that may see ETH set a new all-time high of around $5,627.
Despite the Ethereum ETF approval announcement, ETH's price has failed to react positively as it is down by about 2.5% in the past 24 hours.
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