Ethereum ETFs approved for trading – starting today! – BitcoinBlog.de – the blog for Bitcoin and other virtual currencies
The Chicago Board Options Exchange (CBOE) is opening trading in five Ethereum spot ETFs starting today. These are the ETFs from VanEck, Invesco, Franklin Templeton, Fidelity and 21Shares, which track the spot price of Ethereum and are backed by Ether.
This move followed a surprise approval of the ETFs by the SEC at the end of May, which was not quite as clear as with the Bitcoin ETFs. Therefore, the exact day of start of trading was unclear. At the beginning of July, the SEC delayed the approval by sending the “S-1” forms back to the ETF issuers.
Now, however, the final step appears to have been completed and trading on the CBOE, the world’s largest options exchange, can begin today when the exchange opens to U.S. customers.
The price of Ethereum remained surprisingly calm in the face of this news. Ethereum continued its price increase, which it had already started on July 6th and 7th from a low of 2,600 euros. Today, Ethereum has added 1.5 percent to that, and what is particularly notable is that the price has also risen significantly in Bitcoin.
As with Bitcoin, the approval of ETFs is already priced in as an immediate event. It was clear from the end of May that this would inevitably happen. In the long term, however – as the Bitcoin ETF also shows us – easy access to traditional investment capital is a hard factor that will have a lasting impact on price discovery on the stock exchanges.
One downside, however, is that staking is not allowed, as this would define a different class of the underlying asset. This means that investors miss out on a largely risk-free dividend of between five and ten percent – which is, at least, good news for everyone else, as the Ether that is not tied up in ETFs but freely staked in users’ wallets generates higher interest.
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