The American financial markets regulator (SEC) finally gave its approval to the creation of index funds (ETFs) based on the cryptocurrency ether, Thursday, May 23, while nearly a dozen files had been filed by several financial organizations.

The American financial markets regulator (SEC) approved Thursday, May 23, the registration of index funds (ETFs) based on the cryptocurrency ether, opening the door to the marketing of these financial products which notably make cryptocurrencies accessible. for the general public.

Several management companies have requested the approval of the American regulator of financial markets, the SEC, to put these investment products in ether on the market, with nearly ten files which had been filed, in particular by the financial organizations VanEck , 21Shares or even BlackRock.

The Stock Exchange policeman had until Thursday to make a decision.

Similar decisions in London and Hong Kong

Launched in 2015, Ether is currently the second largest digital currency in total value, now estimated at more than $455 billion.

In January, the SEC cleared bitcoin-indexed ETFs, sparking a wave of enthusiasm for the upstream digital token. Financial centers are increasingly authorizing the listing of financial products backed by bitcoin or ether, like the FCA, the policeman of the British markets, which gave the green light on Wednesday.

21Shares is also one of the companies also authorized to list these products in London.

At the end of April, the Hong Kong Stock Exchange took a similar decision, becoming the first in Asia to offer ETFs, which also allow investors to pay in bitcoins or ethers to bet on them, which the United States does not yet authorize. United.

New step to democratize access to cryptos

ETFs are a type of investment allowing investors to benefit from developments in cryptocurrencies without directly investing their money in these highly volatile digital currencies. Their development is considered a major step for the adoption of cryptocurrencies by a wider audience.

Concretely, they buy shares of the fund, which they can resell at any time, and not bitcoin or ether, the value of their assets remaining expressed in dollars. The fund’s assets are placed in cryptocurrencies.

Before the development of ETFs, to have access to digital currencies, it was necessary to open an account on a cryptocurrency exchange platform and convert a classic currency (issued by a central bank), such as the dollar.


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