Asset managers are optimistic that the Securities and Exchange Commission will approve the first US ETFs that invest directly in ethereum, possibly as early as mid-July.
The SEC has given ETF applicants until July 8 to submit updated documentation and amended S-1s, with additional rounds of filings possible.
There could be an additional round of filings after the one scheduled for July 8, Bloomberg reported, citing people familiar with the matter.
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Where to find ETFs?
BBG remains open until mid-July.
Amended S-1 forms are due by July 8.
Possible final S-1s by July 12.
Theoretically this would mean the launch week of July 15th.
through twitter.com/emily_graffeo?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>@emily_graffeo twitter.com/olgakharif?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>@olgakharif image.twitter.com/NG8xhtCP21
– Nate Geraci (@NateGeraci) twitter.com/NateGeraci/status/1808296291140600095?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 3, 2024
ethereum ETF contenders
The SEC's recent comments to issuers included minor questions, which are being addressed, the report added.
Galaxy Digital's head of asset management, Steve Kurz, told Bloomberg that an Ether ETF could potentially be approved in the coming weeks.
“This is window dressing, the SEC is involved. We’ve been doing this for months. We did it for the bitcoin ETF, the products are substantially similar – we know the ins and outs, we know the process.”
Major asset managers such as BlackRock, Fidelity, Ark 21Shares and Invesco have filings pending, but many issuers have yet to disclose their funds' fees, a necessary step before trading begins.
It is also unclear whether ethereum ETFs will generate demand similar to that for bitcoin spot ETFs, which have amassed $52 billion in assets since their launch in January.
Analysts have estimated that ethereum ETF flows could account for around 10% to 15% of bitcoin ETF flows and that eth prices could drop by as much as 30% after their launch.
However, cryptocurrency research firm K33 Research expects ethereum to overtake bitcoin in July.
“ETFs are a solid catalyst for eth’s relative strength as the summer progresses and flows accumulate, and I firmly believe current eth/btc prices are a bargain for the patient trader,” K33 senior analyst Vetle Lunde wrote in a July 2 article. eth-oi” target=”_blank” rel=”noopener” data-wpel-link=”external”>report.
bitcoin is facing potential selling pressure due to an upcoming distribution of nearly $9 billion worth of btc linked to the defunct Mt. Gox exchange.
eth price drop
ethereum prices are not showing any positive momentum today. The asset fell 3% to an intraday low of $3,342 during Asian trading on Wednesday.
eth surpassed $3,500 at a ten-day high earlier this week but eclipsed its bigger brother as crypto markets failed to break resistance and retreated once again.
ethereum is currently 17% below its 2024 peak of just over $4,000 and 31% below its November 2021 all-time high.
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