Ethereum (ETH) ETFs Poised for Launch in Coming Week, Industry Insiders Say
A recent report from Reuters suggests that spot Ether exchange-traded funds (ETFs) are poised to enter the market on July 23, as confirmed by three industry insiders. These sources also reveal that the U.S. Securities and Exchange Commission (SEC) has given initial approval to at least three out of eight asset managers to launch the spot Ether ETFs.
Nate Geraci, President of the ETF Store, emphasized this development in a post on X, noting that the SEC has granted preliminary approval to three of the eight spot Ether ETF issuers to commence trading next Tuesday, with all eight set to debut simultaneously. Geraci’s optimistic outlook was evident in his July 15 post, where he anticipated the commencement of spot Eth ETF trading, stating, “Welcome to spot Eth ETF approval week… I’m calling it. I don’t know anything specific; I just can’t come up with a good reason for any further delay at this point. Issuers are ready for launch.”
Industry sources suggest that well-known asset managers like BlackRock, VanEck, and Franklin Templeton are on track to secure SEC approval by July 22, paving the way for trading to kick off the following day. However, the final green light for these spot Ether ETFs hinges on applicants submitting their conclusive offering documents to the SEC by week’s end.
The journey towards spot Ether ETF approval commenced in September with modest expectations due to discouraging feedback from the SEC. However, a turn of events occurred in May when the agency unexpectedly approved crucial rule adjustments, coupled with SEC Chair Gary Gensler acknowledging the impact of the Grayscale ruling, setting the stage for the much-anticipated launch.
The approval of Ether ETFs follows the SEC’s prior reservations concerning market manipulation. The agency’s stance shifted following a legal challenge by digital asset manager Grayscale Investments, resulting in the approval of nine spot Bitcoin ETFs in January. Notably, these ETFs gained rapid traction, amassing around $6.6 billion in assets within the initial three weeks of trading and achieving a net inflow of $33.1 billion by June’s end.
Martin Leinweber, digital asset product strategist at MarketVector Indexes, anticipates more modest inflows and heightened price volatility for Ether compared to Bitcoin, given Ether’s smaller market size and trading volumes. Market data from CoinGecko reveals Bitcoin’s market value surpassing $1 trillion, while Ether’s lags around $359 billion.
Despite Ether’s smaller market cap, Galaxy Research projects that spot Ether ETFs could attract monthly inflows reaching $1 billion. Thomas Perfumo, head of strategy at crypto exchange Kraken, emphasized that the success of spot Ether ETFs wouldn’t necessarily hinge on matching spot Bitcoin ETF inflows.
