SEC Greenlights Nine Spot Ethereum ETFs For Trading Starting July 23
In Brief
US SEC granted its final approval for nine spot Ethereum ETFs, enabling them to commence trading in the United States on July 23rd.
The United States Securities and Exchange Commission (SEC) granted its final approval for nine spot Ethereum exchange-traded funds (ETFs), including those from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, enabling them to commence trading in the United States on July 23rd.
The agency greenlighted the final S-1 registration statements required for their launch on respective stock exchanges, encompassing Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange (CBOE).
Companies aiming to launch their spot Ethereum ETFs initially received approval for their 19b-4 forms from the SEC in May. However, they still required S-1 forms to become effective prior to proceeding with the launch. The decision came as a surprise because of the previous lack of communication between the SEC and the asset management companies. Over the course of the week leading up to the deadlines, the agency unexpectedly altered its stance and informed the exchanges that the Ethereum ETFs would be approved that week.
Spot Ethereum ETFs Projected To Accumulate $5 to $8B In Inflows In Coming Years
It’s a multi-year effort to gain approval from the SEC for ETH ETFs. This comes after the agency’s landmark approval of Bitcoin ETFs in January, marking another notable milestone in the cryptocurrency sector. Since the approval of these investment products in January, these funds have collectively seen net inflows surpassing $16 billion and have amassed over $58 billion in total net assets, as reported by SoSoValue. This substantial growth highlights the strong investor interest in cryptocurrency-based financial products.
However, Senior Bloomberg ETF analyst Eric Balchunas believes that Ethereum ETFs may not achieve the same level of traction. He estimates that these investment products might attract 10 to 15% of the assets garnered by their Bitcoin counterparts. This projection suggests they could accumulate around $5 to $8 billion, which is still considered a strong performance for a new launch within the initial few years. Additionally, the cryptocurrency-focused financial services firm Galaxy Digital predicts that inflows into ETH spot ETFs could reach approximately 33% of the size of spot Bitcoin ETF inflows. According to their latest report, this estimate varies within a range of 20% to 50% in dollar terms.
At the time of writing, ETH is trading at $3,460, showing a decline of over 1.08%, which indicates its volatile movement, according to data from CoinMarketCap.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
