- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.