Invesco and Galaxy Digital File for Spot Ethereum ETF
Invesco and Galaxy Digital have recently filed for a spot Ethereum (ETH) exchange-traded fund (ETF), joining the growing list of asset managers exploring digital asset products. The Invesco Galaxy Ethereum ETF, as outlined in their S-1 registration statement, will reflect the performance of the spot price of ether by holding units of the cryptocurrency with a separate custodian. Invesco is the sponsor of the ETF, while Galaxy Digital will act as the execution agent responsible for selling ETH to cover the Trust’s expenses. Other investment managers, including ARK 21Shares and VanEck, have also sought regulatory approval for spot ETH ETFs.
Future Ether ETFs Expected Soon
While a spot Ether ETF may take time to materialize, futures-based Ether ETFs are anticipated to become available as early as next week. Investment firms such as VanEck, Valkyrie, Bitwise, and Kelly ETFs are preparing to add ETH futures vehicles to their portfolios. These futures ETFs would directly invest in futures contracts traded on the Chicago Mercantile Exchange (CME), providing investors with protection against price manipulation. Reports suggest that the SEC may begin approving Ether futures ETFs in early October. The introduction of futures ETFs has generated significant interest among asset managers and has positively impacted Ether’s trading value.
Hot Take: Increased Interest in Ether ETFs Signals Growing Crypto Adoption
The recent filings by Invesco and Galaxy Digital for a spot Ethereum ETF reflect the growing interest and adoption of cryptocurrencies within traditional finance. As more asset managers explore digital asset products and seek regulatory approval for crypto-based investment vehicles, it demonstrates a shift towards mainstream acceptance of cryptocurrencies like Ethereum. The potential approval of Ether futures ETFs by the SEC further solidifies this trend. If approved, these ETFs would provide investors with regulated exposure to Ethereum and potentially attract more institutional investors to the crypto market. The introduction of Ether ETFs could be a significant milestone in the broader adoption of cryptocurrencies as legitimate investment assets.
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