The Approval of Spot Ethereum ETFs by the SEC Expected Before July 4th

The US Securities and Exchange Commission (SEC) is in the final stages of approving the spot Ethereum ETFs. Asset managers like BlackRock, Franklin Templeton, and Grayscale Investments are currently in discussions with regulators to iron out the last remaining issues. These firms have already successfully launched spot Bitcoin ETFs earlier this year, marking a significant milestone after years of regulatory hurdles.

Executives from the firms involved have reported significant progress in tweaking the necessary documents for the ETFs. There is optimism that the approval could come within a week or two, possibly before the July 4th US holiday. Bloomberg’s ETF analyst, Eric Balchunas, previously hinted at a potential approval by July 2nd, aligning with the current timeline.

Bitwise’s Chief Investment Officer, Matt Hougan, predicts that spot Ethereum ETFs could attract over $15 billion in net inflows within the first 18 months of trading in the US market. This estimate is based on the market size of Ethereum relative to Bitcoin, with Ethereum’s market cap currently at $432 billion compared to Bitcoin’s $1.26 trillion. The ratio between the two assets is 3:1, indicating a strong potential for investor interest in Ethereum ETFs.

The SEC recently approved the 19b-4 forms for the ETFs, signaling a step forward in the approval process. The next stage involves working on S-1 filings, which need to be approved before the ETFs can begin trading. Despite the anticipation surrounding the launch date, the SEC Chair Gary Gensler has remained tight-lipped about the specific timeline. However, he has expressed optimism about approving these investment vehicles, hinting at a potential summer launch.

The potential approval of spot Ethereum ETFs by the SEC before July 4th represents a significant milestone in the cryptocurrency market. With major asset managers working towards finalizing the necessary documents and resolving regulatory issues, there is hope for a successful launch in the near future. If approved, these ETFs could have a substantial impact on the market, attracting billions of dollars in investments and further expanding the reach of Ethereum as a digital asset.