Ethereum (ETH) spot ETFs to launch within a week, industry sources say

According to a Reuters report, three industry sources indicate that spot Ether exchange-traded funds (ETFs) are expected to begin trading on July 23.

The sources also technology/spot-ether-etfs-likely-begin-trading-july-23-industry-sources-say-2024-07-15/” data-wpel-link=”external” target=”_blank”>mention that the US Securities and Exchange Commission (SEC) has granted preliminary approval for at least three of the eight asset managers to launch spot Ether ETFs.

Will Ether Spot ETFs Be Listed Next Week?

Nate Geraci, president of ETF Store, highlighted this development in a post on x. He noted that the SEC has given preliminary approval to at least three of the eight Ether spot ETF issuers to begin trading next Tuesday, with all eight expected to launch simultaneously.

<blockquote class="twitter-tweet”>

Reuters: The SEC has given “preliminary approval” to at least three of the eight eth spot ETF issuers to begin trading next Tuesday…

All eight are expected to launch at the same time. https://t.co/ngACRMnjJr image.twitter.com/BJfuqR8Ju9

– Nate Geraci (@NateGeraci) twitter.com/NateGeraci/status/1812961815833305104?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 15, 2024

This statement followed his post on July 15, where he optimistically predicted: “Welcome to Spot eth ETF approval week… I'm predicting it. I don't know anything specific; I just can't think of a good reason for a further delay at this point. Issuers are ready to launch.”

According to sources, major asset managers such as BlackRock, VanEck and Franklin Templeton are expected to receive SEC approval by July 22, with trading commencing the following day. However, final approval of these spot Ether ETFs is contingent on applicants filing their final offering documents with the SEC by the end of this week.

The road to approval of an Ether spot ETF began in September with low initial expectations due to discouraging comments from the SEC. However, the agency’s surprise approval of necessary rule changes in May and SEC Chairman Gary Gensler’s acknowledgement of the impact of Grayscale’s decision paved the way for the expected launch.

Experts predict more modest income

The approval of the Ether ETFs follows previous reluctance from the SEC due to concerns about market manipulation. The agency’s stance changed after a court challenge filed by digital asset manager Grayscale Investments, leading to the approval of nine bitcoin spot ETFs in January.

According to data from Morningstar Direct, these ETFs quickly gained traction, attracting approximately $6.6 billion in assets within their first three weeks of trading and achieving a net inflow of $33.1 billion by the end of June.

Martin Leinweber, digital asset product strategist at MarketVector Indexes, anticipates more modest inflows and higher price volatility for Ether compared to bitcoin due to Ether’s smaller market size and trading volumes. According to CoinGecko data, bitcoin’s market cap sits at just over $1 trillion, while Ether’s is around $359 billion.

“It’s important to temper expectations,” Leinweber advised. Despite the smaller size of the Ether market, Galaxy Research projects that spot ether ETFs could still attract monthly inflows of $1 billion. Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, added that spot ether ETFs wouldn’t need to match the inflows of spot bitcoin ETFs to be considered successful.

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