The cryptoverse will reach some new horizons on Tuesday with the launch of spot ether ETFs following their approval by the SEC . Ethereum ( ETH-USD ) is trading higher before the funds hit the market, rising 1.3% to $3,520 in early trade. It was only six months ago that the first spot bitcoin ETFs came online and demand for those funds saw net cumulative inflows of more than $15.1B since they started trading on Jan. 11. Check out the real-time market data page for crypto on Seeking Alpha Backdrop: Ether is the native cryptocurrency of the Ethereum blockchain, which touts benefits such as smart contracts and customizable applications for DeFi. Spot ether ETFs will track the performance of the crypto as an underlying asset, making buying and reporting easier due to liquidity and transparency. The simple-to-understand product will also bring things more mainstream, and give institutional and retail investors another opportunity for crypto diversification. BlackRock CEO Larry Fink calls bitcoin 'digital gold,' says he's no longer a skeptic "The thing that people should keep in mind is that more money into crypto and blockchain is not a rising tide that lifts all boats," said Paul Brody, Global Blockchain Leader at EY, citing similarities to the precious metals industry. "Gold is a $14T-$15T in market cap. That is more than 10x larger than the next largest precious metal. I think we will see the same kind of behavior in cryptocurrency." "Bitcoin is digital gold, and it will behave like digital gold, and it will be as dominant to other crypto assets as gold is to other precious metals. Similarly, ethereum has become the dominant kind of tokenized asset and smart contract platform. I think there will be a similar kind of effect there, where ethereum will soak up more than 90% of all these tokenized real-world assets that companies like BlackRock ( BLK ) and others are talking about deploying." Note that the new ether ETFs won't permit staking, which gives investors a source of revenue by earning a yield on token deposits. That could weigh on future demand, with the SEC likely not interested in adding complications or further deliberations about security classifications. There are also leveraged ether-linked ETFs on the market, such as the 2x Ether ETF ( BATS: ETHU ), though there are other risks to consider there , as mentioned by SA analyst Mike Fay. Who's next? OG players bitcoin ( BTC-USD ) and ethereum ( ETH-USD ) are more decentralized than other ecosystems - and benefit from bigger market caps and liquidity - but others are trying to break through. Late last month, VanEck became the first asset manager to file for a spot solana ( SOL-USD ) ETF in the U.S., while CBOE recently filed a request with the SEC to list ETFs tied to the cryptocurrency. It's difficult to predict where American regulators will stand on the new applications, given the current regulatory environment. Unlike other regimes, like the Markets in Crypto-Assets (MiCA) infrastructure in Europe, things boil down to individual circumstances in the U.S., with lots of time, regulatory clarity, and amendments needed to approve any new applications. Spot ether ETFs: Grayscale Ethereum Trust ( OTCQX:ETHE ), Bitwise Ethereum ETF ( NYSEARCA: ETHW ), iShares Ethereum Trust ( NASDAQ: ETHA ), VanEck Ethereum Trust ( BATS: ETHV ), ARK 21Shares Core Ethereum ETF ( BATS: CETH ), Invesco Galaxy Ethereum ETF ( BATS: QETH ), Fidelity Ethereum Fund ( BATS: FETH ), Franklin Ethereum ETF ( BATS: EZET ). More on ethereum Ethereum spot ETFs receive final approval from SEC How the launch of spot ether ETFs may impact the broader crypto market Ethereum: The Price Of Scalability Ethereum Is Getting Better, The Price Is Lagging Ethereum Becomes Inflationary (Again): What It Means For Investors