The United States Securities and Exchange Commission (SEC) has reportedly given preliminary approval to at least three major ETH ETF issuers: BlackRock, Franklin Templeton, and VanEck. This significant move by the US securities regulator has stirred anticipation in the financial markets, suggesting that these Ether exchange-traded funds (ETFs) could begin trading as early as July 23.
The approval from the SEC is now only contingent on the applicants submitting their final offering documents by the end of this week, according to a July 15 report by Reuters. This report indicates that the SEC has paved the way for BlackRock, Franklin Templeton, and VanEck to launch their spot Ether ETFs, a significant milestone in the cryptocurrency market.
The SEC’s decision follows feedback provided to asset managers preparing to launch these ETFs. Notably, Bloomberg ETF analyst Eric Balchunas highlighted that the commission instructed issuers to submit their final S-1 filings by July 16. The final approval from the SEC is expected on July 22 after trading hours, enabling the spot Ether ETFs to start trading on July 23.
“Update: Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course!” Balchunas highlighted.
ETH ETF Issuers: Industry Anticipation and Market Impact
In addition to BlackRock, Franklin Templeton, and VanEck, other major players like Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in the running to launch their Ether products next week. According to sources, all eight spot Ether ETFs are expected to launch simultaneously, mirroring the SEC’s handling of spot Bitcoin ETFs.
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News sources mentioned that the SEC had delivered final instructions to asset managers, preparing them for the imminent launch of Ether ETFs. Bitwise’s chief compliance officer, Katherine Dowling, noted fewer issues between issuers and the SEC regarding the amended S-1 filings, indicating a smooth path towards the launch. Dowling’s optimism was echoed by Bitwise’s chief investment officer, Matt Hougan, who speculated that spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, a figure comparable to the inflows seen with spot Bitcoin ETFs.
This development comes amid a backdrop of increasing interest in Ethereum and its growing adoption in the financial sector. With Ether trading at $3,484 and experiencing a 6.7% increase over the last 24 hours, the approval and launch of these ETFs could further bolster its market position.
ETH ETF Issuers: Final Steps Towards Approval
The SEC’s final approval hinges on the submission of the final S-1 filings, which must include the fee attached to each spot Ether ETF. This critical step will be closely monitored by industry stakeholders, as it will determine the readiness of the ETFs for trading. The anticipation is that the SEC will approve these filings on July 22, setting the stage for the ETFs to begin trading the following day.
The simultaneous launch of all eight spot Ether ETFs represents a coordinated effort by the SEC to streamline the process and ensure a level playing field for all issuers. This approach mirrors the SEC’s previous handling of spot Bitcoin ETFs, which saw a similar coordinated launch, providing a precedent for the upcoming Ether ETF launches.
As the market awaits the final approval and launch of these ETFs, investors and stakeholders will be closely watching the developments. The potential inflows and market impact of these ETFs will be a key focus, as they could set the tone for future cryptocurrency-related financial products.
In conclusion, the SEC’s preliminary approval of ETH ETF issuers BlackRock, Franklin Templeton, and VanEck marks a pivotal moment in the cryptocurrency market. This approval, contingent on the final S-1 filings, set the stage for the imminent launch of these ETFs, which could commence trading as early as July 23. The simultaneous launch of multiple Ether ETFs highlights the growing acceptance and institutional interest in Ethereum, positioning it for further growth and adoption in the financial markets.
Stay connected to The BIT Journal for more updates on ETH ETF issuers and other significant developments in the cryptocurrency market.
