In a landmark decision that sent shockwaves through the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has approved applications for spot Ethereum exchange-traded funds (ETFs) from multiple major asset managers including BlackRock, Fidelity, and VanEck.
The approval, announced Thursday afternoon, marks the second major cryptocurrency ETF approval following Bitcoin spot ETFs in January 2024. Market analysts had been closely watching the SEC's stance on Ethereum, with many expecting a rejection based on previous regulatory hesitancy.
"This is a watershed moment for the entire digital asset ecosystem," said Sarah Chen, Lead Technical Analyst at CryptoInsights. "The approval signals a fundamental shift in how regulators view Ethereum and, by extension, the broader cryptocurrency market."
Following the announcement, Ethereum's price surged over 8% in immediate trading, briefly touching $3,850 before settling at $3,720. Trading volume across major exchanges increased by 340% within the first two hours.
The approved ETFs are expected to begin trading within the next 30-45 days, following the creation of authorized participant agreements and seed funding. Industry experts estimate initial inflows could range between $500 million to $1 billion in the first month.
