- The SEC has approved the trading of spot ether (ETH) ETFs starting July 23
- Issuers like VanEck and Invesco Galaxy have been informed of the SEC’s approval
- ETH ETFs have been approved six months after Bitcoin achieved this milestone
Prospective Ethereum ETF issuers received news yesterday that the US Securities and Exchange Commission (SEC) has greenlit the trading of spot ether (ETH) exchange-traded funds (ETFs) starting July 23. The issuers, which include big names such as VanEck and Invesco Galaxy, have been told that the SEC has no further comment to make on their applications and will allow them to start offering ETH ETFs from next Tuesday, six months after Bitcoin became the first cryptocurrency to achieve this milestone.
One Week Countdown Begins
An Ethereum ETF has been in the wind ever since the first applications were made during the Bitcoin ETF hype last November, and ETF expert Eric Balchunas revealed that issuers all received approval this week:
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
CoinDesk also revealed that SEC officials informed one issuer that the regulator had no further comments on the recently submitted S-1 forms, meaning the last hurdle had been removed. The final versions of these documents are to be submitted by Wednesday and the funds will be ready for listing on exchanges by Tuesday, July 23.
Billions in Inflows Expected
The introduction of spot ether ETFs is anticipated to generate substantial market interest. Crypto exchange Gemini predicts that these ETFs could attract inflows of up to $5 billion within the first six months of trading, while Steno Research estimates that the inflows could reach as high as $20 billion within the first year. Research firm Kaiko also believes that Ethereum could outpace Bitcoin around the launch of the ETF, making significant strides from the ETH/BTC price of 0.053.
This move by the SEC marks a pivotal moment in the mainstream adoption of cryptocurrencies, potentially opening the door for more digital assets to be included in regulated financial products; VanEck has already applied for a Solana ETF.
The news of an imminent Ethereum ETF has the potential to showcase the further demand for cryptocurrencies within the traditional financial sector, although if it attracts far less interest than anticipated, it could backfire on the issuers, who may shy away from further exposure.
