Ethereum ETFs Nearing Approval, Says Bitwise Executives

Jimmy Aki
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Ethereum exchange-traded funds (ETFs) are reportedly close to receiving regulatory approval in the United States, according to Bitwise officers.
Katherine Dowling, chief compliance officer at Bitwise, a crypto asset manager, stated that while an exact launch date remains uncertain, signs point to an imminent approval.

Timeline and Process for the Approval of Ethereum ETFs

In a July 9 interview with Bloomberg, Katherine Dowling revealed that “there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC”
She added that signs of an Ethereum ETF approval all point in the right direction and are close to the finish line.

Notably, eight U.S.-based spot Ether ETFs are currently in the final stages of approval, and the SEC Chair Gary Gensler previously predicted a summer launch for these products, although Dowling noted that “everyone has a different definition of summer.”

On July 3, Bitwise amended its S-1s filings with the SEC, which include a six-month fee waiver for up to $500 million. This was six weeks after the regulator approved spot Ethereum ETF 19b-4 filings on May 23.

Meanwhile, Bitwise CIO Matt Hougan estimated that, if approved, spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading.

This projection is comparable to the performance of spot Bitcoin ETFs, which have accumulated similar amounts since their launch six months ago.

Will Solana ETF follow the close-to-approved Ethereum ETFs?

While the crypto community eagerly awaits the approval of spot Ethereum ETFs for trading, a new chapter has opened with the Chicago Board Options Exchange (CBOE) filing applications for two Solana-based ETFs.

These filings for the 21 Shares Core Solana ETF and the VanEck Solana Trust have set a regulatory timeline in motion, with a decision expected around mid-March 2025.

CBOE argues that Solana ETFs mirror that of Bitcoin and Ethereum, emphasizing Solana’s decentralization, high throughput, and speed as factors that make it resistant to market manipulation.

However, the path to approval for Solana ETFs is far from straightforward. Industry experts expressed skepticism about the prospects of a third cryptocurrency ETF gaining approval under the current SEC leadership.

Bloomberg ETF analyst Eric Balchunas also suggests that the November U.S. presidential election could be a pivotal moment for crypto ETF approvals, hinting at a positive outlook for crypto if Donald Trump wins.

With the SEC standard 240-day review period for the Solana ETF applications, this could provide enough time for a thorough examination of the crypto asset but also leave room for potential shifts in the regulatory or political environment surrounding its likely approval.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.