Crucial points:
- The SEC approved spot Ethereum ETF trading, which will begin on Tuesday.
- Major financial firms, like as Fidelity, VanEck, Franklin Templeton, and BlackRock, provide Ether ETFs.
- Within the first year of trading, analysts have forecast large inflows of between $15 billion and $20 billion.
The Securities and Exchange Commission (SEC) has allowed the trading of spot ether (ETH) exchange-traded funds (ETFs) starting next Tuesday.
Spot Ethereum ETF Trading Is Approved by the SEC
According to Bloomberg ETF expert Eric Balchunas, this approval marks a major turning point for the cryptocurrency sector.
According to a July 15 Reuters report, the SEC’s approval is on the condition that applicants submit their final offering documents to the regulator by this coming Thursday. BlackRock, Franklin Templeton, VanEck, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are among the companies set to offer their own Ether ETFs.
Sources say SEC representatives have told one issuer that there is no further comment on newly submitted S-1 forms unless final versions are filed by Wednesday. The fund might so be listed on markets as early as Tuesday, July 23. Following the ETF’s introduction on Monday, a second source said that trading in the Ethereum ETF could commence on Tuesday.
Despite filing updated S-1 paperwork last week, the issuers have yet to disclose specifics such as management fees. However, VanEck and Invesco Galaxy have made their fee schedules available.
Experts Forecast Large Inflows into New Ether ETFs
Ethereum, the second-biggest cryptocurrency by market cap, has long been regarded as an ideal contender for an ETF. Following the successful launch of spot Bitcoin ETFs in January, several financial institutions have sought SEC permission for an Ether ETF, which allows investors to bet on the price of Ethereum without actually gaining the cryptocurrency.
The January launch of spot ETFs tracking Bitcoin’s cost stamped the conclusion of a decade-long battle with the SEC, which had prior rejected the items due to advertise control concerns. Following a court challenge filed by digital asset management firm Grayscale Investments, the SEC was forced to accept the ETFs while cautioning that they were exceedingly hazardous.
Matt Hougan, Bitwise’s chief venture officer, gauges that spot Ethereum ETF exchanging may produce up to $15 billion in inflows inside the to begin with 18 months. Steno Research expects $20 billion in inflows in the first year.
