[05/28/24] SEC Approves Spot Ether ETFs With a ‘BOOM’

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

Has the digital assets terrain ever looked more favorable?

Bitcoin, ether and other major cryptocurrencies have been surging for much of the past 10 days. Flows into the 11 spot bitcoin ETFs that have started trading this year returned to solidly positive territory, particularly the BlackRock iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC).

And now regulators and lawmakers seem more supportive than ever, albeit grudgingly among the former and some crypto-skeptical Democratic holdouts who note the rising importance of the industry as a voting bloc in an election year.

On Thursday, the Securities and Exchange Commission approved a key rules change that addressed the agency’s concerns about investor protections and regulatory oversight. The next step in the process, SEC approval of S-1 registration statements, is considered a formality on these new products’ path to trading.

U.K.-based financial services company Standard Chartered Bank is now predicting that the spot ether-based funds will generate between $15 billion and $45 billion in inflows in its first year and that ether’s price could soar to $8,000 by the end of 2024.

“BOOM!! APPROVED! The SEC just approved spot #Ethereum ETFs. What a turn of events,” Bloomberg Analyst James Seyffart tweeted Thursday.

Indeed, BOOM!!

By James Rubin

Below is a roundup of the key developments in the ETF industry for the seven-day period ending May 24th, 2024:?

SEC Changes Ethereum Rule, Sets Stage for ETF Approval?Ether’s drop after the Securities and Exchange Commission's rule change sets the stage for final approval of spot Ethereum ETFs.

Financial Advisors Don’t See Rate Cuts This Year As the Fed ponders, advisors are making the most of what the market is giving.

Nvidia ETFs Soar Following Strong Q1 Results AI and semiconductor ETFs benefited.

Did Trump Affect Ether ETFs? Also, Trading Begins When? Trump’s late crypto support may have pushed Democrats to embrace ether ETFs.

ETF Spotlight: EFUT Climbs Amid Ether Surge The fund based on ether futures contracts has risen as excitement about a potential spot Ethereum ETF mounted.

Featured Fund

Valkyrie Bitcoin Strategy ETF (BTF)

BTF is an actively managed fund that invests in bitcoin and ether futures contracts through a subsidiary in the Cayman Islands, maintaining an equal weight for both at each monthly rebalance. The fund does not directly invest in bitcoin or ether. The total notional value of the futures aims to be 100% of the funds net assets.

WHAT TO WATCH

House Members Urge Spot Ethereum ETF Approval Five Representatives send letter to Gensler, calling for approach akin to spot bitcoin funds' approvals.?Read More

Investing in Ethereum ETFs: What to Know Ether was up more 30% as the SEC weighed a key rules change in the approval process for spot Ethereum ETFs.?Read More

How Lukka is Leading Data Management for Crypto ETFs. Learn More

Grayscale Replaces CEO as GBTC Bleeds Assets Goldman Sachs's Peter Mintzberg takes over Aug. 15; GBTC has lost more than $17b since the ETF began trading in January.?Read More

Where Have All the Dividends Gone? ETFs Tell the Story T-bills continue to compete with dividend funds for investor attention.?Read More

Webinar Alert The experts at Boston Partners, portfolio managers of John Hancock Disciplined Value International Select ETF, join etf.com on June 12 at 2:00 PM ET where they're uncovering value within international developed-market equities. Attendees will receive 1 CE credit. Register Today

EXCHANGE TRADED FRIDAYS PODCAST

Franklin Templeton is an ETF success story. Originally known for its mutual funds, the company launched its first ETF a decade ago. Fast forward to today and Franklin has dozens of ETFs tied to everything from Indian equities to spot bitcoin. How has the firm, which manages $1.6 trillion globally, found success in the competitive exchange-traded fund industry? In this episode of Exchange Traded Fridays, etf.com Senior Analyst Sumit Roy and etf.com Wealth Management Editor Jeff Benjamin sit down with Patrick O’Connor, head of global ETFs for Franklin Templeton, to find out.?Listen Now

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TALK ETF’S VIDEO SERIES

Gold has been on a tear in 2024, with prices climbing to a record of nearly $2,400/oz, a gain of more than 15% since the start of the year. What’s causing the rise, and can it continue? In this episode of Talk ETFs, etf.com Senior Analyst Sumit Roy sits down with GraniteShares founder and CEO Will Rhind to find out.?Watch Now | YouTube

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