17 Pages Posted: 13 Dec 2024
Date Written: December 09, 2024
Abstract
The approval of spot Ethereum exchange-traded funds (ETFs) in 2024 marks a transformative moment for institutional participation in digital assets. This paper examines the factors contributing to this regulatory milestone, including increasing institutional interest and the maturation of the cryptocurrency market. It explores the implications of Ethereum ETFs for the broader adoption and mainstreaming of digital assets, focusing on their potential to enhance market liquidity, attract institutional capital, and reshape perceptions of cryptocurrency as an asset class. The analysis highlights both the strategic opportunities, such as expanded access for investors, and the challenges, including regulatory uncertainty and market volatility. The paper also discusses the evolving role of Ethereum in traditional finance and the potential ripple effects on financial market structures. Concluding with an outlook on future ETF approvals, the study underscores the growing integration of digital assets into the global financial ecosystem.
Keywords: Ethereum, ETF, cryptocurrency, institutional investment, digital assets, blockchain, SEC, financial markets
JEL Classification: G11, G14, G15, G23, L86, G29
Suggested Citation: Suggested Citation
