The Securities and Exchange Commission (SEC) has authorized the listing of several spot Ethereum exchange-traded funds (ETFs), following an extensive process of over eight months. This decision, as communicated by Invesco via email, not only mirrors the unpredictable nature of cryptocurrency investments but also underscores the surging interest in them.
The approved ETFs, which are pegged to the spot price of ether, the second most significant cryptocurrency valued at $420 million and the token of the Ethereum smart contracts blockchain, are anticipated to commence trading on Tuesday.
21Shares, Franklin Templeton, Fidelity, and Invesco, in collaboration with Galaxy, have all received confirmation for their applications, as stated in emails to etf.com. Grayscale is set to launch its two Ethereum-focused ETFs on Tuesday, according to an individual familiar with the approval process. Additionally, BlackRock, VanEck, and ProShares have submitted applications to the SEC.
These spot Ethereum ETFs mark the second exchange-traded products tracking the real-time value of a major digital asset to be listed on U.S. exchanges. The expense ratios for these ETFs will predominantly range from 0.15% to 0.25%, with seven funds planning to waive a portion of their fees initially.
On the other hand, the Grayscale Ethereum Trust, which is transitioning from an existing trust, will impose a 2.5% fee. Notably, these approvals come approximately half a year after the SEC greenlit 10 spot bitcoin ETFs linked to the value of the world’s top cryptocurrency by market capitalization.
Since their launch on January 11, these funds, alongside an 11th introduced in March, have attracted about $17 billion in investments, according to Farside Investors—a U.K.-based asset manager. The combined assets under management for these funds have now reached approximately $55 billion, showcasing the growing prominence of cryptocurrency-related ETFs.
