Birthday Billions For Ether After SEC Approves Long-Awaited Spot ETFs
Ether is celebrating its 10th birthday with a major milestone: The Securities and Exchange Commission has approved the first spot exchange-traded funds (ETFs). On Monday, this decision allowed funds run by asset managers like BlackRock and Grayscale to begin trading — bringing in $1B in assets on their first day. This approval enhances Ether’s legitimacy, and the crypto industry expects inflows to take prices to new heights.
- Bitwise’s chief investment officer predicts these new ETFs will attract $15B over the next 18 months — though less explosive than the $17B Bitcoin ETFs gathered in their first six months.
- ETH Futures ETFs already exist, but the approval of spot ETFs improves appeal with lower management fees — which could fall from ~2.5% to less than 0.25%.
From HODL to high-brow: As Bitwise’s CIO puts it, “Traditional asset management can no longer ignore crypto as an asset class.” Besides lower fees, these ETFs offer the convenience of trading on reputable exchanges like Nasdaq, NYSE Arca, and Cboe — reducing the risk associated with collapsing platforms like FTX and Celsius. While retail investors are expected to show more interest, die-hard crypto enthusiasts might find these ETFs less appealing due to the lack of staking opportunities, which offer additional yield. For now, as Ether enters its teenage years, let’s hope it doesn’t start acting too volatile.
