The US Securities and Exchange Commission (SEC) could approve the final tweaks to ethereum spot ETFs before July 4, as discussions between asset managers and regulators reach their final stages.
While speaking to several industry experts, Reuters noted that eight asset managers, including BlackRock, Franklin Templeton and Grayscale Investments, are nearing 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 ready for July
Executives from two of the companies involved are reported to have technology/us-regulators-could-approve-spot-ether-etfs-launch-by-july-4-sources-say-2024-06-26/” data-wpel-link=”external” target=”_blank”>said Reuters said the process of adjusting the documents has made significant progress and only “minor” issues remain to be resolved, which must be cleared before the funds reach the fund.
Approval is expected to come “probably in no more than a week or two,” according to another lawyer.
The latest timeline aligns with Bloomberg ETF analyst Eric Balchunas' disclosure earlier this month in which he suggested that the ethereum spot ETF could be approved before the US July 4 holiday, potentially on July 2. .
Despite widespread speculation about the launch date, the SEC and its chairman, Gary Gensler, have been extremely secretive. In this week's Bloomberg interview, Gensler expressed optimism about the approval of these investment vehicles, but stopped short of offering a specific timeline. He hinted that these funds could begin operating during the summer.
Last month, the regulatory watchdog approved Forms 19b-4. The SEC and issuers are currently working on Forms S-1, which must be approved before these products can begin to be marketed.
ethereum ETFs Could Attract $15 Billion in 18 Months
According to Bitwise's prediction, ethereum spot ETFs are expected to attract more than $15 billion in net inflows within their first 18 months in the US market.
Bitwise 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 stands at around $1.26 trillion, while ethereum’s is $432 billion, resulting in a 3:1 ratio.
Nearly $56 billion of bitcoin’s total market capitalization is invested in U.S. spot bitcoin ETFs, a figure Hougan anticipates will grow to $100 billion by the end of 2025.
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