An exchange-traded fund holding Ethereum (ETH-USD) began its first day of trading on Tuesday after receiving final regulatory approval the previous day.
But despite the debut, Ethereum prices were down 1.5% in afternoon trading.
Yahoo Finance’s Jennifer Schonberger and David Hollerith report.
The SEC gave the go-ahead to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale, and 21Shares, the companies announced on Monday.
Such moves could help make Ethereum, the world’s second-largest cryptocurrency, a primary currency in 401(k) plans, IRAs and pension plans, helping bring digital assets to more mainstream acceptance.
“This is a great example of Fidelity’s rich history and commitment to meeting the evolving needs of our clients,” Cynthia Loh-Bessette, head of digital asset management at Fidelity, said in a press release.
The approval comes roughly six months after the SEC allowed many of the same asset managers to launch ETFs holding Bitcoin (BTC), the world’s largest cryptocurrency.
The new development is the latest example of the success the cryptocurrency industry has been achieving recently as Washington seeks friendlier regulations and greater freedom to launch new products.
This comes just days before Republican presidential candidate Donald Trump is set to give his endorsement when he speaks at the Bitcoin 2024 conference in Nashville this weekend.
Republican presidential candidate and former president Donald Trump holds a campaign rally in Grand Rapids, Michigan, on July 20, 2024. (REUTERS/Tom Brenner) (REUTERS/Reuters)
President Trump and many members of his party have been vocal supporters of digital assets, contrasting them with the Biden administration, which led a crackdown on many of the industry’s leading companies after the 2022 market crash.
“Republicans will end the Democrats’ illegal and un-American crackdown on cryptocurrency,” the Republican Party said in a 16-page party platform last week.
Trump, who has called Bitcoin a “scam” in the past, described the cryptocurrency as “great” in an interview with Bloomberg published last week.
Bitcoin prices have risen more than 6% in the past month to roughly $68,000, near the all-time highs they hit earlier this year.
Ether has fallen 0.5% over the past five days, having been on a downward trend in recent months and remaining far from the all-time highs it hit in November 2021.
