The approval of spot Ether ETFs by the SEC is now contingent on the final submission of documents, with all eight applicants anticipated to launch their funds simultaneously.
According to a Reuters report, three industry insiders reveal that spot Ether exchange-traded funds (ETFs) are expected to commence trading on July 23.
These sources further mention that the U.S. Securities and Exchange Commission (SEC) has given preliminary approval to at least three out of the eight asset managers seeking to introduce spot Ether ETFs.
Will Spot Ether ETFs Trade Next Week?
Nate Geraci, President of the ETF Store, brought attention to this development in a post on X. He noted that the SEC has granted preliminary approval to at least three of the eight spot Ether ETF issuers, with trading expected to begin next Tuesday, and all eight funds anticipated to launch simultaneously.
Reuters: SEC has given “preliminary approval” to at least three of eight spot eth ETF issuers to begin trading next Tuesday…
All eight expected to launch at same time tho. https://t.co/ngACRMnjJr pic.twitter.com/BJfuqR8Ju9
— Nate Geraci (@NateGeraci) July 15, 2024
This announcement came after his July 15 post, where he optimistically declared, “Welcome to spot Eth ETF approval week… I’m calling it. I don’t know anything specific; I just can’t come up with a good reason for any further delay at this point. Issuers are ready for launch.”
Asset Managers Awaiting SEC Approval
Sources suggest that leading asset managers, including BlackRock, VanEck, and Franklin Templeton, are expected to receive SEC approval by July 22, with trading likely to start the following day. However, the final approval for these spot Ether ETFs hinges on the applicants submitting their final offering documents to the SEC by the end of this week.
The path to spot Ether ETF approval began in September with low initial expectations due to discouraging feedback from the SEC. However, the agency’s surprising approval of necessary rule changes in May, along with SEC Chair Gary Gensler’s acknowledgment of the Grayscale ruling’s impact, has paved the way for the anticipated launch.
Experts Predict Modest Inflows
The approval of Ether ETFs follows the SEC’s earlier hesitation due to concerns over market manipulation. The agency’s stance changed after a court challenge by digital asset manager Grayscale Investments, leading to the approval of nine spot Bitcoin ETFs in January.
Morningstar Direct data shows that these ETFs quickly gained traction, attracting approximately $6.6 billion in assets within their first three weeks of trading and achieving a net inflow of $33.1 billion by the end of June.
Martin Leinweber, a digital asset product strategist at MarketVector Indexes, anticipates more modest inflows and greater price volatility for Ether compared to Bitcoin, given Ether’s smaller market size and trading volumes. According to CoinGecko data, Bitcoin’s market value stands at just over $1 trillion, while Ether’s is around $359 billion.
“It’s important to temper expectations,” Leinweber advised. Despite Ether’s smaller market size, Galaxy Research projects that spot Ether ETFs could still attract monthly inflows of $1 billion. Thomas Perfumo, head of strategy at crypto exchange Kraken, added that spot Ether ETFs wouldn’t need to match spot Bitcoin ETF inflows to be considered successful.
