SEC Poised to Approve Spot Ether ETFs for July 23 Launch
According to a report from Reuters, the U.S. Securities and Exchange Commission (SEC) appears to greenlight spot Ether exchange-traded funds (ETFs) for trading as early as next Tuesday, July 23. Industry sources told Reuters that the SEC has granted preliminary approval to at least three asset managers, with the final nod contingent on the submission of conclusive offering documents by week’s end.
BlackRock, Franklin Templeton, and VanEck are among the frontrunners reported to have received preliminary approval. However, the field is crowded with other notable contenders including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy, all vying to launch their Ether products simultaneously.
The SEC has instructed issuers to submit their final S-1 filings by July 16, including crucial details such as management fees. Official approval of these S-1 filings is expected after market close on July 22, paving the way for trading to commence the following day.
This development marks a significant milestone for Ethereum, the world’s second-largest cryptocurrency. The potential introduction of spot Ether ETFs follows the successful launch of spot Bitcoin ETFs in January, which have attracted approximately $15.8 billion in inflows year-to-date.
Industry experts are optimistic about the market’s response. Bitwise’s chief investment officer, Matt Hougan, projects that spot Ether ETFs could draw up to $15 billion in inflows during their first 18 months of trading. Meanwhile, K33 Research offers a more conservative estimate of $4 billion within the initial five months.
The news has already impacted Ethereum’s price, which has surged by 15% over the past week to around $3,400. This represents a significant recovery from its recent low of $2,900 earlier this month, although still shy of its May peak of approximately $4,000.
If approved, these ETFs will be listed on major exchanges including the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange, offering investors exposure to Ethereum through traditional brokerage accounts.
While the crypto community eagerly awaits the SEC’s final decision, it’s worth noting that the approval process for spot Ethereum ETFs has been notably protracted since the regulator’s unexpected approval of spot Ethereum ETFs in May. SEC Chair Gary Gensler previously stated that the approval process hinges on ETF applicants providing comprehensive disclosures to investors.
