Ethereum ETFs Set to Launch Next Week Amid SEC Review of Final Drafts

The Securities and Exchange Commission (SEC) has instructed asset managers to submit final versions of registration statements for spot Ethereum ETFs by Wednesday, with the anticipated launch date set for July 23, according to sources familiar with the SEC’s procedures.

The approval process for spot Ethereum ETFs has been notably sluggish since the sudden approval of such ETFs in May. These ETFs would allow investors to access Ethereum through traditional brokerage accounts, generating growing anticipation.

Bloomberg ETF Analyst Eric Balchunas reported the SEC’s recent communications with asset managers on Twitter. The finalized registration statements are expected to include details on each fund’s management fees.

Balchunas mentioned that the SEC had contacted issuers to request effectiveness for a Tuesday launch on July 23. However, he noted that unforeseen last-minute issues could potentially alter this timeline.

Two sources confirmed the details to Decrypt, with one source affirming receiving similar communications from the SEC.

Despite the SEC approving key filings for spot Ethereum ETFs in May, individual s-1 filings from eight asset managers, including BlackRock, Fidelity, and Grayscale, are still pending approval. SEC Chair Gary Gensler previously stated that the approval process hinges on ETF hopefuls providing full disclosures to investors, noting that the process was progressing smoothly.

Following the approval of spot Bitcoin ETFs in January, which have seen approximately $15.8 billion in inflows this year, the launch of spot Ethereum ETFs could be a significant moment for Ethereum. According to K33 Research, spot Ethereum ETFs could attract up to $4 billion in inflows within their first five months.

Despite Ethereum’s price decline from its peak in May of around $4,000, the asset has seen a 15% increase in price over the past week, reaching approximately $3,400. However, it previously dropped to as low as $2,900 earlier this month.

Additional reporting by Liz Napolitano. Edited by Ryan Ozawa.