According to sources, the SEC may approve the exchange-traded fund (ETF) linked to the spot price of Ethereum (ETH) exchange as early as July 4. They said that the process of amending the issuing document has progressed to solving "minor" problems, with only the final polishing work left, and approval "may not exceed one to two weeks".
According to some industry executives and insiders, the U.S. Securities and Exchange Commission (SEC) may approve the exchange-traded fund (ETF) linked to the spot price of Ethereum (ETH) exchange as early as July 4, and negotiations between asset management firms and regulators have entered the final stage.
Eight asset management companies, including BlackRock, VanEck, Franklin Templeton Fund Group, and Grayscale Investments, are seeking SEC approval for these Ethereum funds. Most of these companies launched spot Bitcoin ETFs earlier this year, the culmination of a decade-long struggle with regulators.
Two asset management firms' executives said that the process of amending the issuing documents has progressed to solving "minor" issues. These documents must be approved before the ETF is launched.
A lawyer who works with one of these issuers said that only the "final polishing" is left and approval "may not exceed one to two weeks".
Earlier this month, SEC Chairman Gary Gensler said that when a spot Ethereum ETF can start trading largely depends on the issuer's speed in responding to SEC inquiries.
Last month, the SEC approved applications for Ethereum spot ETFs from NASDAQ, CBOE Global Markets, and NYSE. This means that once SEC staff sign off on the documents, these products may start trading within 24 hours.
Do not expect too much.
According to data from Morningstar Direct, the Bitcoin spot price-tracking fund launched in January was one of the most successful funds in the ETF market, attracting about $8 billion in assets. However, many ETF and cryptocurrency analysts believe that a new Ethereum spot ETF may be less impressive.
James Butterfill, head of Coinshares research, said: "Ethereum's market cap and trading volume are different."
The price of Ether fell more than 11% this month, and the price of Bitcoin also fell 9.8%. Bitcoin's trend usually affects the price of Ether.
Morningstar ETF analyst Bryan Armour said that given the differences in market size and nature of these two cryptocurrencies, the inflow of funds may be much less when the Ethereum spot ETF is launched.
"The demand for Bitcoin has been suppressed for 10 years, and investor interest has reached a staggering level. This (Ethereum) will not cause the same excitement," he said.
"Bitcoin's demand has been suppressed for 10 years, and investor interest has reached an astonishing level. This (ethereum) will not generate the same excitement," he said.
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