Exchange-traded funds that hold ether (ETH-USD) began their first day of trading Tuesday following final approval from regulators the day prior.
But despite the debut, ether prices dropped 1.5% in afternoon trading.
Yahoo Finance’s Jennifer Schonberger and David Hollerith report:
The Securities and Exchange Commission gave the green light Monday to BlackRock (BLK), Fidelity, Franklin Templeton, Grayscale, and 21 Shares, the companies said.
The moves could make ether, the world’s second-largest cryptocurrency, a potential staple in 401(k)s, IRAs, and pension plans and grant the digital asset more mainstream acceptance.
“This is exemplary of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” Fidelity’s head of digital asset management, Cynthia Lo Bessette, said in a press release.
The approvals come roughly six months after the SEC permitted many of these same money managers to launch ETFs that hold bitcoin (BTC), the world’s largest cryptocurrency.
The new development is the latest example of the recent success the crypto industry is having in Washington as it pushes for friendlier regulation and greater freedom to launch new products.
It comes just days before the Republican nominee for president, Donald Trump, offers his stamp of approval when he speaks before the Bitcoin 2024 conference in Nashville this weekend.
Trump and many in his party have embraced digital assets as they seek to draw a contrast with the Biden administration, which led a crackdown on many of the industry’s major players following a market meltdown in 2022.
The GOP said in its 16-page party platform last week that “Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown.”
Trump, who in the past has called bitcoin a “scam,” referred to cryptocurrencies as “amazing” in an interview with Bloomberg published last week.
The price of bitcoin is up more than 6% over the past month to roughly $68,000, putting it within striking distance of an all-time high set earlier this year.
Ether has fallen 0.5% over the past five days. It has traded down in recent months and remains far off its all-time high set in November 2021.
