The U.S. Securities and Exchange Commission (SEC) is nearing a pivotal decision that could see Ether ETFs trading as soon as July 4. According to sources within the SEC, negotiations with top asset managers are in their final stages.
The Path to Approval
A lawyer involved with the ETF applications, who preferred to remain anonymous, stated, “We are down to the finishing touches.” He added, “Approval is probably not more than a week or two away.”
The SEC has remained tight-lipped officially but SEC Chair Gary Gensler recently shared insights that indicate a positive outlook. Gensler stated,
The process for launching the Ether ETFs is going smoothly. It’s really about the asset managers making the full disclosure so that those registration statements can go effective.
Industry Giants Leading the Charge
The push for Ether ETFs includes applications from heavyweight financial institutions like BlackRock, VanEck, Franklin Templeton, and Grayscale Investments. These firms are not newcomers to the crypto ETF battle, having launched Bitcoin ETFs earlier in the year—a move that attracted significant attention and capital to the sector.
VanEck Introduces Fee-Free Ethereum ETF: SEC Chairman Gensler Updates on ReviewMarket Impact and Analyst Expectations
The January launch of Bitcoin ETFs was a watershed moment, pulling in approximately $8 billion in assets. As of late June, these funds have amassed nearly $38 billion in assets. However, the upcoming Ether ETFs might see a more measured reception. Despite the potential for a less frenetic launch, the approval of Ether ETFs would nonetheless be a major milestone.
Reflecting on the recent history of cryptocurrency ETFs, the Bitcoin market experienced a surge in ETF activity earlier this year. According to Altcoin Daily, 34 ETFs controlled over 1,000,000 BTC, with BlackRock at the forefront with over 300,000 Bitcoins.
Regulatory Framework and Future Prospects
The SEC has already approved the rule changes required for major exchanges like the NYSE, Nasdaq, and Cboe to list and trade these new products. Once the SEC staff signs off on the filings, trading could begin within 24 hours, ushering in a new era for cryptocurrency investments.
