Almost there: The final countdown to the Ethereum Spot ETF begins
TLDR
Bitwise executive says Ethereum ETFs are “closer to finish line” for approval SEC is open to discussions about crypto ETFs beyond Bitcoin, and Ethereum Bloomberg analyst Eric Balchunas suggests July 18 as possible for Ethereum ETFs Many asset managers upgrade S. -1 for Ethereum Minor updates to ETF applications include payment and seed trading details
The long-awaited approval of spot Ethereum exchange-traded funds (ETFs) in the United States appears to be getting closer. Recent developments suggest that these investment products may be available on the market as soon as this month, which is another chapter in the integration of cryptocurrencies with mainstream finance.
Catherine Dowling, chief compliance officer of Bitwise, a crypto asset manager, told Bloomberg that Ethereum ETFs are “closer to the finish line.” She noted that there are “fewer and fewer issues that are being worked out between issuers and the SEC” in S-1 amendments, indicating progress toward approval.
Bitwise Chief Compliance Officer Catherine Dowling talks about her company's Ether ETF app and the potential for new crypto-related products pic.twitter.com/PvMFeG4wWU
— Bloomberg Crypto (@crypto) July 9, 2024
While the exact launch date is uncertain, Bloomberg ETF analyst Eric Balchunas suggested July 18 as the “best guess” for when these funds could start trading. However, the Securities and Exchange Commission (SEC) cautioned that plans are still unclear.
The push for Ethereum ETFs follows the successful launch of Bitcoin ETFs earlier this year. Those funds attracted nearly $15 billion in revenue in the first six months of trading, with top investors showing strong interest in cryptocurrency-based investment products.
In preparation for approval, several major asset managers filed amended S-1 filings for their Ethereum ETF filings on July 8. These include BlackRock, Fidelity, Grayscale, 21Shares, Franklin Templeton and VanEck. Bitwise provided the update earlier on July 3rd.
The most recent updates include minor updates mainly focused on payment termination and seed trading details. For example, VanEyck has announced its intention to waive sponsorship fees for the first $1.5 billion in one year, while Bitvis has introduced a $500 million payout over six months. Franklin Templeton's previously announced $10 billion payout was delayed by six months.
Details of seed investment are also given in some records. Franklin Templeton reported that seed capital investor Franklin Resources Investors bought 4,000 shares at $25 per share for a total of $100,000. VanEyck and Blackrock Trust reported that they received 2,929 ETH and 3,031 ETH from the seed investment.
These improvements, while seemingly minor, are critical steps in the regulatory process. The providers show their readiness to launch their products and their efforts to make these funds attractive to investors.
Dowling also stated that the SEC is open to discussions about crypto ETFs beyond Bitcoin and Ethereum. “We talked to the SEC about what might come down to new products,” she said, describing the relationship as “very interesting.”
This transparency from the SEC could pave the way for a wider range of cryptocurrency-based investment products in the future. But Dowling and other analysts caution that approval for ETFs based on cryptocurrencies other than Bitcoin and Ethereum could take longer and depend on SEC leadership changes.
As evidence of growing interest in various crypto ETFs, VanEck and 21Shares recently filed for Spot Solana ETFs. While these applications are a sign of the industry's ambitions, they may face a longer and more uncertain approval process compared to Ethereum ETFs currently under consideration.
