The final signal on Ether ETFs is expected soon, details next week – source
Issuers of spot ether exchange-traded funds (ETFs) expect to receive final approval from regulators soon, an industry source familiar with the matter said. This sets the stage for EFAs to begin listing next week.
Spot ETF issuers expect to receive final comments as early as next week and possibly as soon as July 12, the source said, declining to be identified because discussions with issuers are private.
A number of issuers — including VanEck and 21Shares — filed updated registrations this week in anticipation of receiving the SEC's final signal to begin listing Ether (ETH) ETFs. 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 Tom Dunleavy, ETH is “rarely available on exchanges[ing] Thinner order books and less to buy” and thus the spot price is more responsive to buying demand from ETFs than from 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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