U.S. Securities Regulator Issues Preliminary Approval to Spot Ether ETFs
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The U.S. Securities and Exchange Commission (SEC) has reportedly issued preliminary approval to three asset managers, raising their hopes of launching spot Ether ETFs for trading next week.
Asset Managers May Launch Ether Products Next Week
A Reuter report revealed that BlackRock, Franklin Templeton, and VanEck are asset managers that have been given preliminary approval to trade.
Other asset managers that are also planning to launch their Ethereum ETF next week include Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy.
It was also disclosed that all eight asset managers will be able to launch their spot Ether ETFs at once in a similar fashion as the spot Bitcoin they submit their final S-1 filings to regulators before this week.
Meanwhile, Bloomberg ETF analyst Eric Balcunhas stated that he expects the approval of the S-1 filings by the following Monday and a possible official launch of the ETFs for trading on Tuesday, July 23.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
Bitwise’s chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading – roughly the same amount that the spot Bitcoin ETFs have mustered since launching six months ago.
Spot Ethereum ETPs Will Attract $15 Billion in Their First 18 Months
An excerpt from Bitwise CIO @Matt_Hougan's weekly memo to investors.A good starting point for estimating inflows is to look at the relative size of BTC and ETH. I’d expect investors to allocate to Bitcoin and…
— Bitwise (@BitwiseInvest) June 26, 2024
Notably, the SEC approved spot Ethereum ETFs 19b-4 filings on May 23. Once the spot Ether ETFs are approved and given the green light for launch, they will be listed on the Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange.
Possible Impact of the Spot ETF on Ethereum Price
The buzz and the eventual impact of the approved nine spot Bitcoin ETF on Bitcoin’s bullish run earlier this year is what many experts are anticipating to become the fate of Ethereum after the launching of its spot ETF for trading.
At press time, Ethereum trades at $3,405, increasing by 2.07% in the last 24 hours. This is partly due to the anticipation surrounding the approval of the spot ETF, as it has created a positive outlook among investors.
Recall that Standard Chartered has predicted Ethereum price to reach $8,000 by the end of 2024 and $14,000 by the end of 2025, following the possible approval of spot Ethereum ETF.
Standard Chartered analyst Geoff Kendrick expects the ETH SPOT ETF to be approved this week, leading to inflows of $15 billion to $45 billion in the first 12 months, ETF could push ETH to $8,000 by the end of 2024. Bitcoin will reach $150,000 by the end of 2024.…
— Wu Blockchain (@WuBlockchain) May 21, 2024
Furthermore, industry experts believe the spot Ethereum ETF will prompt other crypto ETFs to emerge, as seen in VanEck’s application for a spot Solana ETF. However, the US Securities and Exchange Commission (SEC) would have until 2025 to respond to the request.
