The SEC is expected to approve the first US ETF for direct investment in Ethereum as early as mid-July.
According to the Zhitongcaijing app, asset management companies are optimistic that the US Securities and Exchange Commission (SEC) will approve the first US exchange-traded fund (ETF) for direct investment in Ethereum, possibly as early as mid-July. They say communication with the regulator remains constructive.
According to two knowledgeable sources, although the market had earlier speculated that a spot Ethereum ETF would be approved during the July 4 holiday, the SEC has informed the Ethereum ETF applicant that they must submit updated documents before July 8. After this round of applications which ended on Friday, another round of applications may be possible.
The sources said that the SEC's latest feedback to issuers last Friday included some minor issues, which they are currently addressing. In May of this year, the SEC approved the exchange proposal to list these products. These products still need to be individually approved before they can be listed.
Optimism about ETF approval is driving Ethereum higher.
Steve Kurz, head of asset management at Galaxy Digital, predicts that the Ethereum ETF will be approved in the coming weeks. He says Galaxy has applied for an Ethereum ETF.
Kurz said on Tuesday: "This is just the surface, the SEC is involved. We've been working on this for months. We've done this work for Bitcoin ETFs, and the product is essentially the same - we know the channels, we know the process."
Companies like BlackRock, Fidelity Investments, 21Shares, and Invesco are among those awaiting approval. Many issuers have not yet disclosed the fees for their respective funds, which is a necessary step before the fund can begin trading.
Assuming these funds are approved, a key question is whether an Ethereum portfolio will generate demand similar to that generated by the historic listing of the US spot Bitcoin ETF in January of this year, which has accumulated $52 billion in assets.
As of the time of writing, Ethereum has fallen by about 1.5% to $3,411. So far this year, the second largest cryptocurrency behind Bitcoin has risen by about 50%.