SEC approves rule change to enable ether ETFs

In another big win for crypto, the Security and Exchange Commission (SEC) approved a rule change yesterday that would allow the creation of ether exchange-traded funds (ETFs).

The development follows the SEC’s approval of spot bitcoin ETFs in January, which have already attracted over $12 billion in net inflows.

Anticipation of ether ETFs drove the crypto’s price by over 20% since Monday, which now stands at approximately $450 billion in market value—one-third of bitcoin’s value.

Several Wall Street companies, including BlackRock and Galaxy Digital (key players in sponsoring bitcoin ETFs), are initiating processes to establish ether funds.

While the regulatory shift signals mainstream acceptance of trading with cryptocurrency, the new ether ETFs will not offer stake options, potentially limiting their appeal compared to bitcoin funds.