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Ethereum’s Journey From Visionary Project to Cornerstone of Blockchain Technology
Photography by Dennis Diatel
Ethereal (ETH-USD) was conceived in 2013 by Vitalik Buterin, a programmer and cryptocurrency enthusiast who sought to create a platform that would expand the capabilities of blockchain technology. While bitcoin (BTC-USD exchange rate) — officially launched in 2009 — was designed as a digital currency and accounting system for financial transactions, Buterin envisioned a more versatile platform.
Below we explore ethereum (ETH-USD), as well as its key features and steps towards integrating the blockchain’s native token, ether, into traditional financial instruments such as exchange-traded funds.
The first days
November 2013: Buterin proposed ethereum (ETH-USD) as a decentralized network that could run smart contracts and decentralized applications (dApps). It wasn’t until the following year that the project really started to gain traction.
July 22, 2014: Ethereum (ETH-USD) launches an initial coin offering to raise funds for the development of the Ethereum network, raising $18 million.
July 30, 2015: Ethereum officially goes live with the introduction of its first version, called Frontier. ETH was purchasable in 2014, but ETH buyers had to wait for the blockchain launch before moving or using their tokens.
Since the inception of Ethereum (ETH-USD), the blockchain has undergone a series of software upgrades, including Byzantium, Constantinople, and Beacon Chain. Each of these advancements has refined and transformed various aspects of the blockchain.
2016: One of the Ethereum (ETH-USD) The largest tests occurred in 2016, when the Decentralized Autonomous Organization (“DAO”), a blockchain-based venture capital fund, was hacked. The incident resulted in a substantial loss of funds and prompted a so-called hard fork in the ETH blockchain to reverse the effects of the hack. Given the price of ETH at the time, the DAO attracted approximately $150 million in ETH.
Steps Toward Spot Ether ETFs
After years of battling with the U.S. Securities and Exchange Commission over the approval of ETFs that directly hold ether (ETH-USD), spot ether ETFs are now a reality. Here are some of the latest steps in the process.
June 2022: Grayscale Investment sues SEC after regulator rejects its request to turn its bitcoin trust into a spot bitcoin ETF.
August 2023: Grayscale wins SEC lawsuit.
September 2023: Potential issuers begin applying for spot ether ETFs.
January 10, 2024: SEC approves spot bitcoin ETFs.
May 23, 2024: The SEC approves key regulatory requirements from potential ETH spot ETF issuers. Regulator approves applications from eight exchanges to list ether ETFs.
May 31, 2024: Expiration for prospective ETF sponsors to submit draft Form S-1s.
July 22, 2024: Spot ether (ETH-USD) ETFs get final approval by the SEC, providing both institutional and retail traders with access to the world’s largest altcoin through easily tradable instruments. The regulatory nod caps a years-long effort to win SEC approval for the products and comes after the approval of spot bitcoin (BTC-USD exchange rate) ETFs in January.
July 23, 2024: First Spot Ether ETFs Listed in the US start to change hands in negative territorydespite the price of ether seeing a small daily gain.
While the introduction of ether-backed products represents a big step towards mainstream acceptance of cryptocurrencies, analysts have suggested that these funds may not attract the same level of investment inflows of bitcoin (BTC-USD exchange rate). Growing interest from institutional investors and the public plays a major role in the viability of these funds. With increased demand, financial institutions are likely to be more inclined to create and offer them.
Spot ether ETF: Bitwise Ethereum ETF (ETHW), iShares Ethereum Trust (Age’), Ethereum Fidelity Fund (SLICE), Franklin Ethereum ETF (EZETO), Grayscale Ethereum Mini Trust (ETH), Grayscale Ethereum Trusts (OTCQX:ETHE), Invesco Galaxy Ethereum ETF (QETH), VanEck Ethereum ETF (ETHV), 21Shares Core Ethereum ETF (CETATE).