Ethereum is officially on the map. Nine spot Ethereum ETFs (exchange-traded funds) started trading today, July 23rd, on major exchanges like Cboe, Nasdaq, and NYSE. This is a huge deal, especially after the SEC (Securities and Exchange Commission) gave the green light just a couple of months ago.
What’s the big deal?
This means Ethereum is the first crypto after Bitcoin to get the SEC’s stamp of approval for a spot ETF. This is a big win for Ethereum and its entire ecosystem, including layer-2 solutions, NFTs, and DeFi.
Why is this so important?
For years, the SEC’s stance on Ethereum has been a major hurdle for growth. Now, with the spot ETF, this uncertainty is gone. Experts believe this will attract institutional investors who want the security of regulatory clarity.
The SEC’s Conditions
While the SEC approved the ETFs, they did set a condition: issuers can’t stake investors’ ETH. This means they can’t earn rewards from the network by locking up ETH. Instead, they have to get ETH from regulated custodians.
What’s next?
The SEC hasn’t officially classified Ethereum as a commodity, unlike Bitcoin. However, the CFTC (Commodity Futures Trading Commission) has already said that Bitcoin, Ethereum, and other coins like Litecoin are all commodities.
Overall, this is a major step forward for Ethereum. It’s now on a path to wider adoption and could see a significant price increase in the coming months. /p>
