BlackRock, VanEck, Franklin Templeton, and Grayscale Investments are among the eight major asset managers seeking SEC approval for these funds.
The Securities and Exchange Commission (SEC) is nearing approval for Ethereum spot ETFs by July 4, with talks between asset managers and regulators in their final stages, according to Reuters.
Eight major asset managers, including BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, seek SEC approval for these funds, having launched spot bitcoin ETFs in January, with Grayscale aiming to convert an existing trust into an ETF.
Senior ETF analyst Eric Balchunas suggests Ethereum-based funds could launch by July 2, while a Reuters report indicates SEC approval for spot Ethereum ETFs by July 4.
The SEC declined to comment, but SEC Chair Gary Gensler stated in an interview earlier this month that the launch date depends partly on issuers’ response speed to the regulator’s queries.
The January launch of bitcoin spot ETFs was highly successful, attracting approximately $8 billion in assets, according to Morningstar Direct data. Currently, these products hold nearly $38 billion in assets, although Grayscale Bitcoin Trust’s holdings dipped to $17.8 billion from its initial $27 billion conversion.
Analysts note that the upcoming spot ether ETFs may not generate the same level of excitement as bitcoin ETFs did. Ethereum’s market cap and trading volumes are smaller, which could result in more subdued investor interest upon launch.
James Butterfill, head of research at Coinshares, highlighted that Ethereum’s market dynamics differ from Bitcoin, with recent price movements reflecting an 11% decline for Ether alongside a 9.8% drop in Bitcoin.
Bryan Armour, an ETF analyst at Morningstar, pointed out that while bitcoin ETFs met pent-up demand after a decade, the launch of ether ETFs might see more restrained investor enthusiasm due to these differences.
The SEC has already approved necessary rule changes for exchanges like the New York Stock Exchange and Nasdaq to list and oversee the trading of these new products. Once SEC staff approve the filings, trading could begin within 24 hours.
This imminent approval marks a significant development in the cryptocurrency ETF landscape, potentially opening new avenues for institutional and retail investors alike to access Ethereum through regulated financial products.