In This Article:
Spot ethereum (ETH-USD) ETF's are making their trading debut on Tuesday following their approval by the Securities and Exchange Commission after the market close on Monday.
Yahoo Finance senior reporter Jennifer Schonberger highlights some of the ETFs that have begun trading, including Grayscale Ethereum Trust (ETHE), Invesco Galaxy Ethereum (QETH), and Fidelity Ethereum (FETH). The ETF's will directly invest in ether, the base currency of the ethereum network, while tracking this currency on a spot basis giving exposure to the price of the digital asset versus operating through futures.
To attract new investors, some ETF issuers are waiving management fees for the remainder of the year, with issuers hoping the asset could become a staple among 401(k), pension plans, and IRA funds.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by John Lesinski
Spot ether ETFs making their trading debut today. The ETFs which directly invest in the cryptocurrency Ethereum are expected to boost sentiment across the entire crypto landscape. Joining us now to discuss is Yahoo Finance's very own Jennifer Schonberger. Jen, what do investors need to know here?
Good morning, Ali. Great to see you. That's right. Spot ether exchange traded funds have begun trading for the very first time today after approval from the Securities and Exchange Commission late last night after the market closed. Nine ETFs getting that green light, including Grayscale Ethereum Trust, VanEck Ethereum, Fidelity Ethereum, and Ishares Ethereum. You can see those tickers there on your screen. Now, these ETFs will invest directly in ether, the world's second largest cryptocurrency and the cryptocurrency used in the Ethereum network. There were already ether ETFs that track ether futures contracts, but these are the first to track ether on a spot basis, giving you exposure to the actual underlying asset. That is, the fund tracks the actual price of the digital asset directly rather through tangential futures. Now, many issuers are waiving expense fees charged for managing the funds for the remainder of the year to lure investors. The approval could make ether a potential staple in 401Ks, pension plans, and IRAs, and grant the cryptocurrency mainstream acceptance. This approval coming about six months after the SEC granted approval to some of the very same fund managers for spot Bitcoin ETFs. Unlike Bitcoin, which is viewed as purely a digital asset that has limited quantities, Ethereum is a digital asset that also has broader applications. Ethereum is a platform for building projects and creating more efficient uses for technologies like smart contracts that could be used in industries from housing to insurance. Ether is up fractionally on today's session and up 50% year to date. Ali,
Jennifer Schonberger, thank you so much for joining us.
