Representation of Ethereum, with its native cryptocurrency ether. Dado Ruvic | Reuters The Securities and Exchange Commission appears to have given the green light for exchange traded funds that hold ether , the world's second-largest cryptocurrency. Trading is expected to begin as soon as Tuesday.
Several fund issuers submitted additional registration statements on Monday afternoon, and exchanges have given notice that the funds will trade on Tuesday, indicating that the SEC has signed off on the funds. The regulator did not immediately respond to a request for comment from CNBC on Monday. It approved rule changes for exchanges to list ether funds in May.
Some of the companies that have been vying to launch ether funds include massive asset managers like BlackRock, Fidelity and VanEck. Crypto-focused firms like Bitwise, 21Shares and Grayscale — which is effectively converting its multi-billion dollar Ethereum Trust into two ETFs with different fee levels — are also jumping in. The ether ETFs come about six months after the launch of bitcoin ETFs , which saw some of the most successful debuts in the industry's history.
Combined, the funds have attracted more than $16 billion of net inflows, led by the iShares Bitcoin Trust (IBIT) , according to FactSet. The ether funds aren't expected to be as popular as the bitcoin funds, in part because the total market for ether is roughly one-fourth the size of the leading cryptocurrencies. Still, the funds are expected to be large by.