The U.S. Securities and Exchange Commission has approved the first spot Ethereum exchange-traded fund, opening the door for mainstream investors to gain exposure to the world's second-largest cryptocurrency through traditional brokerage accounts.

The approval, which covers applications from BlackRock, Fidelity, and several other major asset managers, represents a watershed moment for the cryptocurrency industry and follows the successful debut of spot Bitcoin ETFs earlier this year. Ethereum's price jumped 12% on the announcement, briefly touching $4,500.

"The approval of a spot Ethereum ETF removes one of the last major barriers to institutional adoption of the broader crypto asset class," said Cathie Wood, CEO of ARK Invest. "We expect significant inflows as pension funds, endowments, and wealth managers allocate to this newly accessible asset."

Analysts at Standard Chartered estimate that spot Ethereum ETFs could attract between $15 billion and $45 billion in net inflows within their first year of trading, based on the trajectory of Bitcoin ETF adoption. The products will trade on major exchanges including the NYSE, Nasdaq, and CBOE.

The regulatory milestone also has broader implications for the crypto industry, as it signals a more accommodating stance from the SEC toward digital asset investment products. Market participants are already speculating about potential ETF approvals for other major cryptocurrencies, including Solana and XRP, though most analysts believe those remain further out on the timeline.