NEWS

The US Securities and Exchange Commission officially approved the launch of trading funds for the Ethereum cryptocurrency, starting Tuesday morning, and the currency was traded at a value exceeding one billion dollars on the first day.

This follows the leading cryptocurrency Bitcoin, which in January of this year raised its ETFs worth $4.7 billion on the first day of trading.

Under this approval, 9 issuing companies will receive approval from the US Securities and Exchange Commission, including 21 Shares, BlackRock, and Fidelity, according to disclosures and data from asset management companies.

Binance CEO Richard Ting described the launch of the first Ethereum trading funds as a positive development for the digital assets market, and said in a statement that it will enhance the legitimacy and accessibility of cryptocurrencies.

It was stated in the statement that ETFs will contribute to allaying concerns regarding the legitimacy of digital currencies, regulatory compliance issues, security and accessibility: making Ethereum a more attractive investment option.

He added that the performance of these funds is unlikely to be dramatic at first, and will fluctuate based on various macroeconomic factors. The liquidity of these ETFs is expected to grow significantly in the coming period.

Ting explained that the reception of Bitcoin ETFs in the US markets was very positive. It recorded an inflow of $4.7 billion on the first day of trading.

US Bitcoin ETFs had cumulative net inflows of more than $16.59 billion as of July 17, according to Ting.

He pointed out that these traded funds could serve as a gateway for investors who do not want to invest directly in digital currencies, and these investors may move over time to purchasing assets directly, which contributes to the growth and maturity of the market.

Bitcoin exchange-traded funds attracted nearly $7 billion in assets in the first three weeks of trading, Morningstar Direct data showed. The value of these cash flows as of the end of July amounted to $33.1 billion.

Investors do not expect the value that Ethereum will collect from ETFs to come close to the cash flows that Bitcoin received during the first week of trading, given the smaller market value of Ethereum, which amounts to $424 billion, compared to $1.4 trillion for Bitcoin, according to Reuters.