Bitcoin ETFs are poised to launch on Tuesday, six months after a successful debut for bitcoin funds.

• Trading is expected to begin as soon as Tuesday.
• Bitcoin ETFs were launched successfully, and six months later, ether ETFs were introduced.
• BlackRock, Fidelity and Grayscale are among the firms slated to launch funds.

The Securities and Exchange Commission has approved exchange traded funds that hold Ethereum, the world's second-largest cryptocurrency. Trading is expected to commence on Tuesday.

On Monday afternoon, several fund issuers submitted additional registration statements, and exchanges have announced that the funds will begin trading on Tuesday, indicating that the SEC has approved the funds.

In May, the regulator approved rule changes allowing exchanges to list ether funds, but did not immediately respond to a request for comment from CNBC on Monday.

Large asset managers such as BlackRock, Fidelity, and VanEck, as well as crypto-focused firms like Bitwise, 21Shares, and Grayscale, are among the companies competing to launch ether funds.

Bitcoin ETFs were launched six months before the creation of ether ETFs, which experienced successful debuts in the industry. The combined funds have attracted over $16 billion in net inflows, with the iShares Bitcoin Trust (IBIT) leading the way, according to FactSet.

The ether funds are not anticipated to be as widely used as the bitcoin funds due to the fact that the total market for ether is only one-fourth the size of the leading cryptocurrencies.

The funds for Bitwise ETFs are predicted to be substantial, with CEO Matt Hougan anticipating $15 billion in investments in the first year and half on the market, with many investors holding both bitcoin and ether funds.

According to Hougan, an investor who lacks a specific perspective on blockchain technology and only seeks exposure to its potential should begin by investing in both bitcoin and eth.

In the U.S., the first funds to buy and hold spot ether will be introduced, although there are already some funds on the market that use ether futures contracts.