Ethereum ETFs Approved by SEC, Bringing Popular Funds to Second-Largest Cryptocurrency

The SEC has approved Ethereum ETFs, allowing Americans to trade ether via ETFs starting Tuesday.

: The SEC has approved ether ETFs, granting access to Ethereum through exchange-traded funds. This follows the approval of bitcoin ETFs in January, which attracted billions in investments. Although the market expects inflows of $15-$20 billion in the first year, some analysts predict lower demand compared to bitcoin ETFs.

U.S. regulators have officially approved ether ETFs, offering Americans a straightforward means to invest in Ethereum through ETFs. This decision follows the SEC's approval of bitcoin ETFs in January, which saw significant investments and boosted bitcoin's price to new highs.

The approval came after the SEC began engaging with ETF issuers in late May, leading to a key filing approval on May 23. This move is seen as a significant shift towards the broader acceptance of cryptocurrency investments by conventional investors through traditional brokerage accounts.

Analysts have diverse opinions on the impact of this development. While some predict ether's price could rise to $6,500, others, like research firm Steno Research, forecast inflows of $15-$20 billion in the first year but do not expect the same high demand as bitcoin ETFs, due to Ethereum lacking the same strong narrative as bitcoin.

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