The United States Securities and Exchange Commission (SEC) has reportedly given “preliminary approval” to at least three asset managers for their spot Ether exchange-traded funds (ETFs). This development has increased speculation that the ETFs will begin trading as early as next Tuesday.
According to a July 15 report by Reuters, the SEC approval is now only contingent on the applicants submitting final offering documents to the regulator before the end of this week. The report cited three industry sources.
Ether ETFs Launch Imminent
The asset managers mentioned in the report include BlackRock, Franklin Templeton, and VanEck. Additionally, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in the running to launch their Ether products next week.
One source told Reuters that all eight spot Ether ETFs are expected to launch simultaneously, similar to the SEC’s handling of spot Bitcoin ETFs.
The SEC has reportedly delivered final instructions to asset managers preparing to launch Ether ETFs. According to Bloomberg ETF analyst Eric Balchunas, the Commission instructed issuers to submit their final S-1 filings by July 16. Balchunas noted that all applicants must state the fee attached to their spot Ether ETFs when submitting their amended S-1 filings this week.
⚡️ @SECGov tells $ETH ETF issuers that the funds can begin trading around July 23rd
Ethereum exchange traded-funds issuers were reportedly told by the SEC that funds could start trading on July 23rd. According to one of the issuers, SEC officials stated that the regulator had… pic.twitter.com/vv07U8CW93
— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) July 16, 2024
Reuters’ report aligns with recent comments from Bitwise’s chief compliance officer, Katherine Dowling, who said they have seen “fewer and fewer issues” vetted back and forth between the issuers and the SEC with the amended S-1 filings.
“So that points all signs in the direction that we are close. We’re close to the finish line on the launch,” Dowling said on July 9.
Bitwise’s chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading. This is roughly the same amount that the spot Bitcoin ETFs have attracted since launching six months ago.
S-1 Filings Await Approval
If approved, the spot Ether ETFs would be listed on the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.
Hougan also expects the SEC to officially approve the S-1 filings next Monday after trading hours close. This would allow the spot Ether ETFs to officially start trading on Tuesday, July 23.
Gary Gensler’s commission delivered a first round of feedback on the S-1 filings in late June, which came about five weeks after the SEC approved the 19b-4 filings on May 23.
