Securities and Exchange Commission (SEC) is % calculator close to approving Ethereum spot ETFs, according to Reuters. Several major asset managers, such as BlackRock and VanEck, are in final talks with regulators. They are seeking SEC approval to launch these funds, similar to the bitcoin ETFs launched earlier this year. Grayscale Investments plans to convert an existing trust into an ETF.
Eric Balchunas, a senior ETF analyst, predicts that Ethereum-based funds could debut by July 2. Meanwhile, a Reuters report suggests SEC approval for spot Ethereum ETFs by July 4. The SEC has not commented officially, but SEC Chair Gary Gensler hinted earlier this month that the launch timeline depends partly on how quickly issuers respond to regulatory queries.
Bitcoin spot ETFs, launched in January, were highly successful, amassing around $8 billion in assets according to Morningstar Direct data. Currently, these products hold nearly $38 billion, although Grayscale Bitcoin Trust’s holdings decreased from $27 billion to $17.8 billion after conversion.
Analysts caution that Ethereum ETFs may not spark the same excitement as bitcoin ETFs did. Ethereum has a smaller market cap and trading volume, which could lead to more subdued investor interest initially. Recent price movements show Ethereum down 11% and bitcoin down 9.8%.
James Butterfill from Coinshares noted that Ethereum’s market dynamics differ from bitcoin, impacting investor sentiment. Bryan Armour, an ETF analyst at Morningstar, added that while bitcoin ETFs met long-standing demand, Ethereum ETFs might see more cautious investor enthusiasm due to these differences.
The SEC has already approved rule changes for exchanges like the New York Stock Exchange and Nasdaq to list and oversee trading of these new products. Once SEC staff approve the filings, trading could commence within 24 hours.
This pending approval marks a significant step in cryptocurrencycurrency ETFs, potentially offering new avenues for both institutional and retail investors to access Ethereum through regulated financial products.
Also read: SEC and Coinbase Disagree on Investment Contract Criteria
