Prospective issuers of a spot Ether (ETH) exchange-traded fund (ETF) received confirmation from the Securities and Exchange Commission (SEC) on Monday that their funds can commence trading next Tuesday, according to sources familiar with the matter.
SEC officials informed one issuer that they had no further comments on the recently submitted S-1 filings and required final versions to be submitted by Wednesday, as relayed by one source. This clears the path for the ETFs to be listed on exchanges starting Tuesday, July 23, pending effective status by Monday.
A separate source indicated that trading could potentially kick off on Tuesday once the ETFs are deemed effective the preceding day.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, initially broke the news via social media. The issuers had submitted revised S-1 documents last week, though specifics such as management fees have yet to be disclosed. Only a handful of issuers, including VanEck and Invesco Galaxy, have publicized their fee structures thus far.
Gemini, a prominent crypto exchange, anticipates substantial initial inflows into spot Ether ETFs, estimating up to $5 billion within the first six months post-launch. Steno Research, meanwhile, projects even higher potential, foreseeing inflows possibly reaching $20 billion within the inaugural year.
Market reaction to the announcement was palpable, with Ether prices surging by as much as 7.3% on Monday, surpassing Bitcoin’s 6% gain. The CoinDesk 20 index, which tracks major cryptocurrencies, also rose by 5.6% on the day, reflecting broad market optimism surrounding the imminent introduction of Ether ETFs.
The approval and forthcoming trading of Ether ETFs represent a significant milestone for the cryptocurrency market, providing institutional and retail investors alike with a regulated avenue to gain exposure to Ether without directly owning the underlying asset. As anticipation builds for the official launch next week, stakeholders will closely monitor market dynamics and investor sentiment to gauge the ETFs’ impact on the broader crypto ecosystem.
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