Crypto Market May Get Strong Momentum, Trading of Ether ETFs Approved

Trading of exchange traded funds (ETFs) of Ether, the second largest cryptocurrency in terms of market capitalization, has received approval from market regulator SEC in the US. The ETF of the largest cryptocurrency Bitcoin was launched earlier this year. It has received a good response from investors.

Trading of Ether ETFs of VanEck, Franklin Templeton, Fidelity and Invesco will start from Tuesday. Apart from this, Ether ETFs of some other financial companies will also be launched. This product of Ether has been launched after the launch of spot bitcoin ETFs Crypto This is a victory for the industry’s drive to include digital assets in the financial sector. Fees for Ether ETFs range from 0.19 percent to 2.5 percent. This product is important for the crypto segment and will determine whether digital assets are accepted as an investment or not.
Spot crypto ETFs will track the market price of the associated cryptocurrency and provide investors with the opportunity to invest in that cryptocurrency without buying it. The central government’s strict attitude towards cryptocurrencies in India remains intact. Recently, Finance Minister Nirmala Sitharaman had said that cryptocurrencies are not considered or seen as ‘currency’.

High taxes on the crypto segment in the country are affecting growth. The crypto industry had requested the central government to reduce taxes on this segment. However, in the budget presented on Tuesday, Sitharaman did not make any mention of cryptocurrencies. This has disappointed the stakeholders associated with this industry. Regulators in some countries have also warned about cryptocurrencies. Cases of scams related to this segment have also increased. Last week, the security of a multi-signature wallet of crypto exchange WazirX was breached. About $240 million (about Rs 1,965 crore) from this exchange has been suspiciously sent to a new address, which is linked to the controversial crypto mixer platform, Tornado Cash. WazirX came to know about this matter from a post on the social media platform X by security firm Cyvers. WazirX has blocked all deposits and withdrawals on its platform. Cyvers had reported that the address to which the funds were sent from WazirX had converted PEPE, GALA and USDT tokens into Ether.

(This news has not been edited by the NDTV team. It has been published directly from the Syndicate feed.)