Approval of spot Ethereum ETFs could be just a week or two away.
The US Securities and Exchange Commission (SEC) is expected to approve the latest adjustments for spot Ethereum ETFs by July 4, as final discussions between asset managers and regulators are underway.
According to industry insiders interviewed by Reuters, eight asset managers, including BlackRock, Franklin Templeton, and Grayscale Investments, are nearing the final stages of approval. Many of these firms launched spot Bitcoin ETFs in January after a decade-long regulatory battle, and Grayscale is looking to convert an existing trust into an ETF.
Ethereum ETFs Expected in July
Executives from two firms involved in the process told Reuters that document adjustments are nearly complete, with only minor issues remaining before the funds can launch. Approval is anticipated within a week or two, according to a lawyer involved in the process.
This timeline aligns with Bloomberg’s ETF analyst Eric Balchunas’ recent prediction that the spot Ethereum ETF could be approved by July 2nd, ahead of the July 4th US holiday.
Despite speculation, the SEC and its Chair Gary Gensler have not provided a specific timeline. In a recent Bloomberg interview, Gensler expressed optimism about approving these investment vehicles but did not offer details on the timing, suggesting they might go live during the summer.
Last month, the SEC approved the 19b-4 forms. Currently, the SEC and issuers are working on S-1 filings, which must be approved before these products can start trading.
Potential $15 Billion Inflows into Ethereum ETFs
Bitwise predicts that spot Ethereum ETFs could attract over $15 billion in net inflows within their first 18 months in the US market.
Bitwise’s CIO Matt Hougan based his estimate on Bitcoin ETF data and Ethereum’s market size relative to Bitcoin. Currently, Bitcoin’s market cap is around $1.26 trillion, while Ethereum’s is $432 billion, resulting in a 3:1 ratio.
Almost $56 billion of Bitcoin’s total market cap is invested in US spot Bitcoin ETFs, a figure Hougan expects will grow to $100 billion by the end of 2025.
