Recently, Ethereum (ETH) has been hitting new all time highs on several metrics. The new Ethereum ATH is causing a great deal of attention. Today news broke that VanEck Associates Corp. just kicked started a new push with the SEC for an ETF tracking the cryptocurrency, Ether. VanEck has already submitted a Bitcoin ETF, which is currently pending review. This is their first Ethereum ETF application, and if successful, it will become the first Ethereum ETF to be available on US stock markets.
A traditional ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits of stocks, mutual funds, or bonds. Like individual stocks, ETF shares are traded throughout the day at prices that change based on supply and demand. Likewise, an Etertheum ETFs would be an exchange-traded fund that will track the value of Ethereum and it trades on traditional market exchanges rather than cryptocurrency exchanges. This will allow investors to invest in Ethereum without having to go to a cryptocurrency exchange while providing leverage to its price. The bottom line is that an Ethereum ETF would allow retail traders to buy & sell ETH directly on their brokerage accounts.
Ethereum is at the top of it’s game regarding platforms to build crypto projects upon. It is the largest general purpose blockchain in today’s market since its launch in 2015. with more than 1,600 Ethereum projects built on it. It is one of the largest decentralized open source blockchain system that features its own cryptocurrency, Ether. ETH also works as a platform for the execution of decentralized smarts contracts. It’s likely that if a Bitcoin ETF is approved, this Ethereum ETF might also be approved.
