Ethereum ETFs Set for Launch Next Tuesday as SEC Approvals Imminent
The launch of Ethereum exchange-traded funds (ETFs) appears imminent. Multiple sources familiar with the matter told Reuters that the Securities and Exchange Commission (SEC) has given the green light for ETH ETFs to begin trading as early as next Tuesday, July 23.
This development follows the SEC's decision to inform at least one ETF issuer that no further comments are required on their recently submitted S-1 documents. Final versions of these documents are due by Wednesday, July 17.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
The impending launch of ETH ETFs has already had a significant impact on the market. Ethereum's price surged by 7.3% on Monday to $3,472 currently, outperforming Bitcoin's 6% gain, as investors anticipate increased institutional interest in the second-largest cryptocurrency. Market indices also experienced substantial growth.
Industry experts are projecting substantial inflows into ETH ETFs. Gemini predicted up to $5 billion in net inflows within the first six months post-launch, while Steno Research estimates a staggering $20 billion within a year.
SEC Gives Preliminary Approval to Multiple ETH ETF Issuers
Adding to the bullish sentiment, Reuters also reported that the SEC has granted "preliminary approval" to at least three asset managers for their spot Ether ETFs. BlackRock, Franklin Templeton, and VanEck are among the firms that have reportedly received this preliminary nod.
While final approval is contingent on the submission of final offering documents by the end of this week, the industry is optimistic about a simultaneous launch for multiple ETH ETFs, mirroring the SEC's approach to spot Bitcoin ETFs.
Bitwise's chief investment officer, Matt Hougan, predicted that ETH ETFs could attract up to $15 billion in inflows within the first 18 months of trading, comparable to the inflows seen by spot Bitcoin ETFs since their launch six months ago.
The potential listing of ETH ETFs on major exchanges like Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange is expected to further legitimize Ethereum and increase its accessibility to traditional investors.