Approval of spot Ethereum ETFs is likely “not more than a week or two away.”
The US Securities and Exchange Commission (SEC) might approve the latest tweaks about the spot Ethereum ETFs by July 4, as discussions between asset managers and regulators reach their final stages.
While speaking to several industry insiders, Reuters observed that eight asset managers, including BlackRock, Franklin Templeton, and Grayscale Investments, are closing in on the final stages. Many of these firms launched spot Bitcoin ETFs in January after a decade-long struggle with regulators, and Grayscale is again aiming to convert an existing trust into an ETF.
Ethereum ETFs Poised For July
Executives from two of the firms involved reportedly told Reuters that the process of tweaking the documents has progressed significantly, and only “minor” issues remain to be resolved, which must get a go-ahead before the funds hit the floor.
The approval is expected to be “probably not more than a week or two away,” according to another lawyer.
The latest timeline aligns with Bloomberg’s ETF analyst Eric Balchunas’ revelation earlier this month in which he suggested that the spot Ethereum ETF could be approved before the July 4th US holiday, potentially by July 2nd.
Despite the widespread speculation about the launch date, the SEC and its Chair Gary Gensler have been extremely tight-lipped. In this week’s Bloomberg interview, Gensler expressed optimism about approving these investment vehicles but refrained from offering any specific timeline. He hinted that these funds might go live during the summer.
Last month, the regulatory watchdog approved the 19b-4 forms. Currently, the SEC and the issuers are working on S-1 filings, which must be approved before these products can start trading.
Ethereum ETFs Could Attract $15B in 18 Months
According to Bitwise’s prediction, spot Ethereum ETFs are expected to attract over $15 billion in net inflows within their first 18 months in the US market.
Bitwise’s CIO Matt Hougan based his estimate on Bitcoin ETF data and Ethereum’s market size relative to BTC. Currently, the market cap of the world’s largest digital asset sits at around $1.26 trillion, while Ethereum’s is $432 billion, resulting in a 3:1 ratio.
Almost $56 billion of Bitcoin’s total market cap is invested in the spot Bitcoin ETFs of the US, a figure Hougan anticipates will grow to $100 billion by the end of 2025.