Eight Ethereum ETFs will operate alongside the digital asset fund manager Grayscale and other investment funds like BlackRock, Franklin Templeton, 21Shares, Bitwise, VanEck, Invesco Galaxy, and Fidelity.
The U.S. Securities and Exchange Commission (SEC) approved the listing of eight Ethereum cryptocurrency ETFs on the U.S. stock exchange.
This marks the second cryptocurrency to officially enter Wall Street, following Bitcoin’s debut on January 10th through 13 funds. The regulator approved the listing in May, and this Tuesday, trading began for the eight cryptocurrency instruments, valued at $3.40 per unit.
During Bitcoin’s launch in January, $4.7 billion was formally invested on the first day of trading.
By mid-July, Bitcoin’s managed assets reached $17 billion. However, a study by Galaxy Research estimated that Ethereum’s revenues could reach $1 billion in five months, though some experts believe it could rise to $4 billion.
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Richard Teng, CEO of Binance, the leading blockchain ecosystem, predicted that capital will flow into the cryptocurrency instrument, but the initial surge is unlikely to be dramatic and will depend largely on various economic factors.
He added that the liquidity potential of the new instrument is significant, as SEC approval formalizes its use among institutional investors. Since Bitcoin’s arrival at the NYSE Arca and the Chicago Board Options Exchange, Ethereum’s price has increased by 35%, as formal trading was anticipated.