The highly anticipated debut of exchange-traded funds holding ether (ETH-USD) finally arrived on Tuesday, following the final approval from regulators the day prior. However, despite the excitement surrounding the launch, ether prices experienced a 1.5% drop in afternoon trading.
So, what does this mean for investors and the crypto industry as a whole? Well, the Securities and Exchange Commission gave the green light to major players such as BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale, and 21 Shares to offer ether ETFs. This move could potentially elevate ether, the world’s second-largest cryptocurrency, to a new level of mainstream acceptance by making it accessible through popular investment vehicles like 401(k)s, IRAs, and pension plans.
Fidelity’s head of digital asset management, Cynthia Lo Bessette, expressed the significance of this approval, highlighting Fidelity’s commitment to meeting the evolving needs of customers. This milestone comes on the heels of the SEC’s approval of ETFs holding bitcoin, the largest cryptocurrency in the world, just six months earlier.
The crypto industry’s increasing success in Washington is evident in the push for more favorable regulations and the freedom to introduce innovative products. This progress is further underscored by the upcoming participation of the Republican nominee for president, Donald Trump, at the Bitcoin 2024 conference in Nashville. Trump’s presence is a clear indication of the growing interest and support for digital assets within the political landscape.
In a recent interview, Trump praised cryptocurrencies as “amazing,” a notable shift from his previous skepticism towards bitcoin, which he once labeled a “scam.” The Republican Party’s stance on crypto reflects a decisive rejection of the Biden administration’s crackdown on the industry following a market crash in 2022.
While bitcoin has seen a 6% increase in price over the past month, soaring to around $68,000 and nearing its all-time high, ether has experienced a 0.5% decline in the last five days. Despite its recent struggles, ether remains a prominent player in the crypto market, although it still has a ways to go to reach its peak in November 2021.
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