Nasdaq and BlackRock Propose Ethereum ETF Options

Two big players are now in line to move ahead with Ethereum ETF options, but Ethereum proponents are not very happy.

The current trade price of the Ethereum (ETH) coin is $2,390 & this price is 27% down over the last 7 days period.

Nasdaq and BlackRock have announced plans to create exchange-traded funds (ETFs) for Ethereum. An ETF is a type of investment fund that is traded on stock exchanges, much like stocks.

If the United States Securities and Exchange Commission (SEC) approves this application, then people will be able to invest in Ethereum without having to buy the cryptocurrency directly. 

BlackRock, a major investment company, and Nasdaq, a big stock exchange, believe that these new ETFs will make it easier for more people to invest in Ethereum. They hope this will attract both big investors and retail small people who are interested in the growing sector of cryptocurrencies.

The proposed Ethereum ETFs will give investors a way to gain exposure to the price movements of Ethereum without needing to manage or store the cryptocurrency themselves. This is similar to how people can invest in gold ETFs instead of buying and storing physical gold. Here, neither the ETF issuers nor the investors will be required to manage any crypto assets, as the ETF will trade based on the actual price of Ethereum.

If approved by regulators, these ETFs could be available to investors soon. Many people believe that this development could play a significant role in bringing cryptocurrencies into mainstream financial markets. 

On the other hand, some people argue that such traditional financial products for the crypto sector could have a negative impact because capital will go into ETF futures products, which they see as an imaginary world of money, more like a gambling business for the ETF issuers.

Ethereum spot ETF & capital inflow 

On August 6, the Ethereum spot ETF saw a total inflow of $98.3 million. Grayscale’s ETF, ETHE, had an outflow of $39.7 million, while BlackRock’s ETF, ETHA, had an inflow of $110 million. Fidelity’s ETF, FETH, had an inflow of $22.5 million. The total net asset value of the Ethereum spot ETF is $7.06 billion.

Read also: Four Factors Could Trigger a Crypto Bull Market, Says Analyst