The US Securities and Exchange Commission (SEC) is on the verge of approving some changes to the Ethereum ETFs by July 4. After a long process of discussions between asset managers and regulators, it seems like the final stages are near.
According to Reuters, eight asset managers, including big names like BlackRock, Franklin Templeton, and Grayscale Investments, are getting closer to the finish line. These firms have already launched spot Bitcoin ETFs in January, and now Grayscale is looking to convert an existing trust into an ETF for Ethereum.
Executives from two of the firms involved have stated that the process of adjusting the documents is moving forward well, with only “minor” issues left to be resolved. Once these minor issues are addressed, the funds can be launched.
There is speculation that the approval could come within a week or two, possibly before the July 4th holiday. Bloomberg’s ETF analyst Eric Balchunas had previously suggested that the spot Ethereum ETF might be approved by July 2nd.
Despite all the buzz surrounding the potential launch date, the SEC and Chair Gary Gensler have not disclosed any specific timeline. Gensler did express optimism about approving these investment vehicles during a recent Bloomberg interview, hinting that they could go live in the summer.
Last month, the SEC approved the 19b-4 forms, and now they are working on the S-1 filings. These filings need to be approved before the products can officially start trading.
According to Bitwise’s prediction, spot Ethereum ETFs could attract over $15 billion in net inflows within the first 18 months of launching in the US market. Bitwise’s CIO Matt Hougan based this estimate on data from Bitcoin ETFs and the relative market size of Ethereum compared to Bitcoin.
Currently, Bitcoin’s market cap is around $1.26 trillion, while Ethereum’s market cap is $432 billion, resulting in a 3:1 ratio. Hougan anticipates that the total market cap invested in spot Bitcoin ETFs in the US, which is currently $56 billion, could grow to $100 billion by the end of 2025.
In conclusion, the potential approval of Ethereum ETFs by the SEC could open up a significant opportunity for investors to gain exposure to the cryptocurrency market. With the growing interest in digital assets, these ETFs could be a game-changer for the industry.