Ethereum
SEC Approves Ether ETF, But What is Ethereum? YF explains
The Securities and Exchange Commission (SEC) has has given its approval for American stock exchanges to begin being listed Ether ETF, next in ttraces of bitcoin spot ETFs (BTC-USD) green light in early 2024.
But what exactly are the fundamental differences between the two main cryptocurrencies (ETH-USD) and the blockchain networks on which they operate? Wealth! Host Brad Smith break everything down.
For more expert insights and the latest market action, click here to watch this full episode of Wealth!
This message was written by Luke Carberry Mogan.
Video transcription
GOOD.
The SEC takes its first step to allow S ether ETFs to trade. The Securities and Exchange Commission has approved applications for eight S Ethereum ETFs. However, further approvals are required before the products can be launched.
But back to all you curious crypto investors who are just dipping their toes or feet in the water here.
What is ether?
With a market capitalization of over $450 billion?
Currently, it is the second largest cryptocurrency behind Bitcoin, and is used to power the Ethereum blockchain, but also ether and Bitcoin.
They differ here in several ways.
The most important difference is that Ether, Blockchain and Bitcoin blockchains operate on two different frameworks used to power crypto transactions on Ethereum.
It works based on Bitcoin proof of stake, proof of work for Bitcoin.
Transactions are verified by computers using electricity, called cryptominers, while for the Ethernet network, these same transactions are verified through a process known as staking.
Now, staking means putting your money, in this case your ether, into a pool to help maintain network security and then validating transactions.
And in exchange, you have the opportunity to get more ether.
Think of it almost as an interest.
The SEC approved the 11 spot Bitcoin ETF S earlier this year, and hype around the currency drove Bitcoin, reaching an all-time high of over $73,000 in March.
The SEC just cleared the way for eight S ether ETFs to trade pending further approvals.
And the development is the latest example of some of the success the crypto industry is enjoying in Washington, which is pushing for friendlier regulations and greater freedom to launch new products.
For years, the SEC has denied requests to create such cryptocurrency-related ETFs, with some of those victories changing.