SEC Grants Preliminary Approval for Three Issuers to Launch Ethereum ETFs

The United States Securities and Exchange Commission (SEC) has reportedly given initial approval to three out of eight prominent crypto asset firms looking to introduce spot-based Ethereum exchange-traded funds (ETFs). These Ether ETFs are scheduled to commence trading on Tuesday, July 23, marking a significant milestone in the cryptocurrency realm and a substantial advancement in the ongoing endeavors to bring Ethereum ETFs to the U.S. market.

As per various sources, BlackRock, VanEck, and Franklin Templeton have received preliminary approval from the SEC. This preliminary nod paves the way for the potential debut of the first-ever spot-based Ethereum ETFs in the United States. Other entities like Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also gearing up to launch their Ether products, thereby broadening the scope of the crypto market.

If granted final approval, these spot ETFs would offer investors a regulated and potentially lucrative avenue to gain exposure to Ethereum without directly holding the cryptocurrency. Ethereum, the second-largest digital currency globally after Bitcoin, presents itself as a promising investment prospect.

Katherine Dowling, Bitwise’s chief compliance officer, mentioned a decrease in the number of concerns raised by the SEC during the amended S-1 filing process, indicating that the applications are progressing towards the final stages of approval. Matt Hougan, Bitwise’s chief investment officer, speculated that spot Ethereum ETFs could potentially attract up to ₹1,500 crores in the initial year of trading. The SEC’s approval of several Bitcoin futures ETFs in 2021 has witnessed substantial growth and acceptance post-launch.

Currently, ETH is trading around ₹2,83,900, marking a 2.56 percent decline over the past 24 hours. The anticipated approval of Ethereum ETFs would enable their listing on major exchanges such as Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange, thereby broadening the spectrum of investment opportunities and further fostering its adoption in the global market.

It is essential to note that while preliminary approval is a significant step, it does not guarantee final authorization. The SEC still needs to make a conclusive decision on whether to approve the ETFs based on public feedback and regulatory considerations.