SEC May Approve Ethereum ETF by July 4, Reports Suggest

The U.S. Securities and Exchange Commission (SEC) could approve spot ETH-ETFs as early as July 4, as discussions between issuers and the regulator have reached their final stage, according to Reuters, citing sources.

Executives from the issuers, who wished to remain anonymous, stated that the process of amending applications has progressed to resolving “minor” issues. These documents must be approved before the launch of the exchange-traded funds.

A lawyer working with one of the issuers noted that “only the final touches remain,” suggesting that approval is “likely no more than a week or two away.”

On May 23, the SEC approved 19b-4 applications from spot Ethereum-ETF issuers. Trading will commence once the agency signs off on the registration statements on Form S-1.

By the end of June, BlackRock, VanEck, Franklin Templeton, Grayscale Investments, Invesco Galaxy, and 21Shares had submitted updated documents detailing initial investments and fees.

Previously, SEC Chairman Gary Gensler declined to specify exact launch dates for the products but emphasized that the application review process is “proceeding smoothly.”

Reuters’ information aligns with the forecast of Bloomberg analyst Eric Balchunas, who suggested the instruments could launch by July 2.

Many industry analysts believe that the launch of new spot ETH-ETFs will be less impressive compared to their bitcoin counterparts.

“Ethereum is smaller [than the first cryptocurrency] in terms of market capitalization,” noted Coinshares’ head of research James Butterfill in a conversation with the publication.

Considering the differences in capitalization and nature of the two cryptocurrencies, inflows into the new funds may be more restrained, added Morningstar analyst Brian Armour.

“In the case of bitcoin, there was pent-up demand over a decade, and investor interest was off the charts. [ETH-ETF] just won’t generate the same buzz,” the expert clarified.

Bernstein also predicted reduced demand for Ethereum funds due to the absence of staking.

On June 13, Gensler noted that he expects the bureaucratic procedures for the launch of exchange-traded funds based on the second-largest cryptocurrency by market capitalization to be completed by the end of summer.