Ether ETFs Set to Commence Trading on July 23: Announcement
Ethereum-based spot exchange-traded funds (ETFs) have finally received approval after a lengthy journey, with trading expected to commence as early as next week. The U.S. Securities and Exchange Commission (SEC) instructed spot ether ETF issuers to submit final S-1 forms by Wednesday, paving the way for the funds to launch on July 23, as reported by Bloomberg’s senior ETF analyst on Monday.
At the time of reporting, the price of ether was up by 6%, hovering around $3,490, based on data from CoinMarketCap. Various issuers, including BlackRock, 21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco, have been preparing to introduce their ether-based funds since September 2023.
Initially, there was skepticism among market participants regarding the approval of an ether-based spot ETF. However, sentiments shifted positively after the SEC greenlit crucial regulatory filings from issuers in May. Earlier projections had set July 4 as a potential launch date for these funds, as issuers and SEC personnel finalized the application details.
Sources revealed that three issuers – BlackRock, Franklin Templeton, and VanEck – had obtained preliminary approval from the SEC for their funds to commence trading next Tuesday, as per Reuters. If the launch proceeds as scheduled, the upcoming week could prove significant for the crypto industry, coinciding with the Bitcoin 2024 conference in Nashville.
Bitwise Chief Investment Officer Matt Hougan anticipates that spot ether ETFs could draw in inflows worth $15 billion within the initial 18 months of trading. Hougan highlighted that his projections did not factor in various positive factors contributing to Ethereum’s growth, such as the emergence of stablecoins, increased regulatory clarity, and the impact of the Dencun upgrade, which reduced transaction expenses on the blockchain.
According to Hougan, “ETH is a compelling asset powering the world’s most versatile blockchain. But even $15 billion in net new demand will have a dramatic impact on the Ethereum market.” The potential introduction of spot ether ETFs represents a significant development in the crypto sphere, with industry players closely monitoring the unfolding events surrounding these anticipated financial products.
