Federal regulators have given the green light for investment products tied to the cryptocurrency Ether, marking a significant milestone for the crypto industry. The Securities and Exchange Commission approved the listing of exchange-traded funds (E.T.F.s) linked to the price of Ether, providing a simpler and more accessible way for people to invest in digital currencies.
This approval follows a similar decision in January regarding Bitcoin E.T.F.s, which led to a surge in investment and a record high for Bitcoin prices. The impact of the Ether approval may take some time to materialize, as companies like BlackRock and Franklin Templeton still need approval to issue these products.
The news has been met with celebration in the crypto industry, with 21Shares calling it an “exciting moment for the industry at large.” However, critics have raised concerns about the potential risks of wider investment in a volatile market.
E.T.F.s are popular investment products offered by mainstream financial services firms, allowing customers to buy shares in baskets of assets rather than the assets themselves. In the crypto world, E.T.F.s offer simplicity and ease of trading, making it easier for investors to participate in the digital currency market.
The approval of Ether E.T.F.s is seen as a positive step towards wider adoption of digital currencies, following the success of Bitcoin E.T.F.s in attracting billions of dollars in investment. The price of Ether has rebounded in recent months, currently trading at around $3,800 per coin, while Bitcoin remains the most valuable digital asset at approximately $68,000 per coin.
