SEC Grants ‘Preliminary Approval’ to At Least 3 ETH ETF Issuers: Report
The US Securities and Exchange Commission has reportedly given “preliminary approval” to at least three asset managers for their positions in Ether exchange-traded funds – ETFs – adding fuel to speculation that they will begin trading by next Tuesday.
SEC approval is now contingent on applicants submitting final documents to the regulator by the end of this week, “three industry sources” told Reuters in a July 15 report.
Those applicants include BlackRock, Franklin Templeton and VanEyck, the sources said.
Fidelity, ARK 21Shares, Grayscale, Bitwise and Invesco Galaxy are in the running to launch their Ether products next week.
One of those sources told Reuters that all eight spot Ether (ETH) ETFs are expected to launch at the same time — just as the SEC handles the spot Bitcoin (BTC) ETFs.
Cointelegraph reached out to BlackRock, Franklin Templeton and VanEyck, but did not receive an immediate response.
This comes as the SEC issues final guidelines to asset managers preparing to launch Ether Exchange Traded Funds (ETFs).
According to Bloomberg EFF analyst Eric Balkunhas, the commission has instructed issuers to submit their final S-1 filings by July 16.
Balchunas said all applicants must disclose fees associated with their positions with Ether ETFs when they file an amended S-1 this week.
The SEC also expects to formally approve the S-1 after the close of trading hours next Monday – allowing the Ether ETFs to begin trading publicly on Tuesday, July 23.
Gary Gensler's commission issued its first round of feedback on the S-1 filings in late June, which came five weeks after the SEC approved the 19b-4 filings on May 23.
Related: Ether may surpass Bitcoin after spot ETF launch: Kaiko
The Reuters report is consistent with recent comments shared by Bitwise Chief Compliance Officer Kathryn Dowling, who said in the updated S-1 filings we've seen “fewer and fewer cases” of back-and-forth between the issuers and the SEC.
“So that all points in the direction of us being close. We're close to the finish line at the beginning,” Dowling said on July 9.
Bitwise Chief Investment Officer Matt Hugan estimated that the Ether ETF could attract as much as $15 billion in revenue in its first 18 months of trading — roughly what Bitcoin ETFs have raised since its launch six months ago.
If approved, the Ether ETF will be listed on the Nasdaq, the New York Stock Exchange and the Chicago Board Options Exchange.
Ether is currently trading at $3,484, up 6.7% in the last 24 hours.
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