The Securities and Exchanges Commission (SEC) has given the green light for Ethereum exchange traded-funds (ETFs) to start trading on July 23, as reported by sources. ETH outperformed BTC on Monday following the news of potential ETF trading approval. The SEC informed issuers of spot ether (ETH) ETFs on Monday that they can commence trading next Tuesday, according to two sources familiar with the matter. The SEC had no further comments on the recently submitted S-1s and the final versions need to be submitted by Wednesday. The ETFs are expected to be listed on exchanges on Tuesday, July 23, as per the sources.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, was the first to report this development on social media. The issuers submitted amended S-1 documents last week, but details such as management fees for investors have not been disclosed by some issuers yet. VanEck and Invesco Galaxy are among the few issuers who have revealed their fees. Once live on the market, spot ether ETFs could potentially see inflows of up to $5 billion in the first six months, according to predictions from Gemini crypto exchange. Steno Research anticipates inflows of up to $20 billion in the first year.
On the news of ETFs starting to trade next week, the price of ether surged by as much as 7.3% on Monday, surpassing bitcoin’s 6% gain. The CoinDesk 20 index also climbed 5.6% on the same day. It is possible that trading could commence on Tuesday once the ETFs are deemed effective on Monday.
Helene, a reporter based in New York, covers Wall Street, the emergence of spot bitcoin ETFs, and crypto exchanges. She is also the co-host of CoinDesk’s Markets Daily show. Helene is a graduate of New York University’s business and economic reporting program and has made appearances on CBS News, YahooFinance, and Nasdaq TradeTalks. She holds BTC and ETH in her portfolio.
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Stay tuned for updates on the Ethereum ETF trading debut next week as the crypto market anticipates significant movements in response to this development.