Final signal on Ether ETFs expected soon, next week details – source
Issuers of spot Ethereum exchange-traded funds (ETFs) expect to receive final approval from regulators soon, according to an industry source familiar with the matter. This sets the stage for Ether (ETH) ETFs to begin listing as soon as next week.
Spot ETF issuers expect to receive final comments from the U.S. Securities and Exchange Commission (SEC) as early as next week and possibly as soon as July 12, according to the source, who could not be identified because discussions with issuers are private.
Several issuers—including Van Eck and 21Shares—filed updated registrations this week hoping to begin listing ETH ETFs after receiving the SEC's final mark. In total, some eight placeholders are awaiting regulatory approval.
Analysts expect the ETH ETF to attract billions of dollars in inflows in the months following its listing, which could lead to a significant appreciation in Ether's spot price. According to crypto analyst Mark Dunleavy, ETH is “rarely available on exchanges.[ing] Thinner order books and less to buy” and therefore the ETH spot price is more responsive to buying demand from ETFs than BTC.
Related: Ethereum ETF revenues could hit $10B, sending ETH to new high – Analyst
One notable source of interest is crypto-native hedge funds, which have held billions of dollars worth of ETH for years and are now reaching out to institutional market makers like Virtu Financial to exchange those holdings for ETF shares. to the source.
More than a dozen crypto-native funds with total assets under management of more than $1 billion have each expressed interest in such an exchange, according to the source.
Once listed, the spot ETH ETF will meet the docket of publicly traded crypto funds, including roughly a dozen Bitcoin (BTC) ETFs that began trading after receiving regulatory approval in January.
More than $50 billion worth of BTC is currently held in ETFs. Dunleavy predicts that ETH ETFs could attract up to $10 billion in inflows in the coming months. Spot Solana (SOL) ETFs may soon join the ranks, with at least two likely to begin trading early next year.
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