BlackRock, Franklin Templeton, and VanEck
The United States Securities and Exchange Commission (SEC) has reportedly granted “preliminary approval” to at least three asset managers for their spot Ether (ETH) exchange-traded funds (ETFs). According to industry sources, BlackRock, Franklin Templeton, and VanEck have received the nod from the SEC, fueling speculation that these ETFs could begin trading as early as next Tuesday.
Final Steps for Approval
The SEC’s approval is contingent upon the applicants submitting their final offering documents to the regulator before the end of this week. According to a July 15 report by Reuters, the SEC instructed issuers to submit their final S-1 filings by July 16. These filings must include details such as the fees attached to the spot Ether ETFs.
Eric Balchunas, a Bloomberg ETF analyst, noted that the SEC is expected to officially approve the S-1 filings next Monday after trading hours, allowing the spot Ether ETFs to start trading on Tuesday, July 23.
Other Applicants in the Running
In addition to BlackRock, Franklin Templeton, and VanEck, other prominent firms like Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in the running to launch their Ether products next week. One source indicated that all eight spot Ether ETFs are expected to launch simultaneously, similar to the SEC’s handling of spot Bitcoin ETFs.
Industry Reactions
The news aligns with recent comments from Bitwise’s chief compliance officer, Katherine Dowling, who noted a reduction in issues between issuers and the SEC regarding the amended S-1 filings. “We’re close to the finish line on the launch,” Dowling said on July 9. Bitwise’s chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading, mirroring the performance of spot Bitcoin ETFs.
Potential Market Impact
If approved, the spot Ether ETFs will be listed on major exchanges such as the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange. The approval of these ETFs could lead to significant inflows, with predictions ranging from $5 billion in the first six months (according to Gemini) to $20 billion in the first year (according to Steno Research).
Market Response
The anticipation of ETF approval has already impacted the market, with the price of Ether rising 6.7% over the last 24 hours to $3,484. On Monday, Ether outperformed Bitcoin, which gained 6%, driven by the news of potential ETF trading approval.
The SEC’s preliminary approval of spot Ether ETFs marks a significant milestone for the cryptocurrency market. With final approval expected next week, these ETFs could provide a substantial boost to Ether’s market presence and attract billions in investment.
