- Ethereum ETFs may launch by August, depending on the SEC’s S-1 approval process, which could take months.
- BlackRock’s Ethereum ETF, ticker $ETHA, marks a significant step but awaits further SEC approvals for trading.
- The crypto market shows dynamic inflows, with Bitcoin ETFs seeing net inflows while Grayscale’s GBTC experiences outflows.
The approval of 19b-4 forms for eight spot Ethereum ETFs marks a significant milestone for the cryptocurrency market. The U.S. Securities and Exchange Commission (SEC) has greenlighted proposals from major financial institutions such as BlackRock, Fidelity, and Grayscale.
However, trading is on hold until the SEC approves each ETF’s S-1 registration statements, which could take weeks or even months. The approval process, unlike that for Bitcoin ETFs, has just begun for Ethereum ETF issuers, causing potential delays.
Ethereum ETF Listing
Ethereum ETF issuers, including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and BlackRock’s iShares Ethereum Trust, are preparing for listings on Nasdaq, NYSE Arca, and the Cboe BZX Exchange. Notably, BlackRock’s spot Ethereum ETF has already been listed on the Depository Trust and Clearing Corporation (DTCC) with the ticker symbol $ETHA. This development signifies a major step forward, yet the journey towards active trading remains lengthy.
Industry experts predict that Ethereum ETFs might launch by July or August, dependent on the SEC’s responsiveness. Bloomberg ETF analyst James Seyffart explains that although the 19b-4 approval is significant, S-1 document approval is still pending.
Seyffart anticipates this could take up to five months, though there is optimism that the process might be somewhat expedited. Consequently, investors and market participants should brace for a potentially extended wait before Ethereum ETFs begin trading.
VanEck, an asset manager, has already submitted its amended S-1 form to the SEC, demonstrating proactive engagement with the regulatory process. Additionally, VanEck released a short advertisement titled “Enter the ether,” celebrating this milestone and signaling its readiness to lead in the Ethereum ETF space. This proactive stance by ETF issuers is crucial in navigating the regulatory landscape and ensuring timely approvals.
Bitcoin Spot ETF Inflows
As highlighted by Colin Wu, a Chinese reporter, the crypto market has witnessed varied inflows and outflows in recent days. On May 23, Bitcoin spot ETFs recorded a total net inflow of $108 million over nine consecutive days. Meanwhile, Grayscale’s ETF GBTC saw an outflow of $13.72 million.
BlackRock’s ETF IBIT had an inflow of $88.95 million, and Fidelity’s ETF FBTC reported an inflow of $19.12 million.
