NEW YORK, July 23, 2024 - Late Monday, the Securities and Exchange Commission (SEC) granted official approval for Ethereum spot exchange-traded funds (ETFs), providing investors with access to the world's second-largest cryptocurrency through traditional financial markets. These Ethereum ETFs began trading at market open on Tuesday.

The SEC approved eight ETFs, including Grayscale's Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), Bitwise Ethereum ETF (ETHW), 21Shares Core Ethereum ETF (CETH), Fidelity Ethereum Fund (FETH), BlackRock’s iShares Ethereum Trust (ETHA), and the Invesco Galaxy Ethereum ETF (QETH). Additionally, Grayscale received approval to convert its Grayscale Ethereum Trust (ETHE) into a spot ETF.

These newly launched spot ETFs will hold ether, the native token of the Ethereum network, offering investors a regulated and accessible way to invest in cryptocurrency. Most of the new ETFs will trade on the CBOE exchange, while the Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Bitwise Ethereum ETF will trade on the New York Stock Exchange. The iShares Ethereum Trust is listed on the Nasdaq.

Coinbase (COIN) will act as the custodian for eight of the newly approved ETFs, continuing its role as the primary custodian for the majority of bitcoin ETFs as well. Fidelity, the only issuer capable of self-custodying the underlying digital assets, will do so for its new investment products.

"The launch of spot Ethereum ETFs marks a major step forward in regulatory clarity for the digital asset class," said Nathan McCauley, CEO of Anchorage Digital. He emphasized that the introduction of these ETFs will offer a new, secure pathway for institutional and retail investors to gain exposure to Ethereum, potentially driving billions in inflows.

Despite the approval, Ethereum's price slightly decreased to $3,480 by Tuesday afternoon, following a minor dip late Monday as the news broke, which had been anticipated by the market. Ethereum has surged nearly 52% so far in 2024.

Meanwhile, Bitcoin traded around $65,600 late Tuesday, down 3.7% over the past 24 hours, although it has climbed 56% this year. Coinbase shares fell 2.8% on Tuesday but have risen 48% year-to-date, with the stock currently consolidating at a buy point of 283.48.