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Ethereum ETF Trading Will Be Approved on July 23

Key Points:

The SEC has approved spot Ethereum ETF trading, starting next Tuesday.
Major financial institutions, including BlackRock, Franklin Templeton, VanEck, Fidelity, and others, are set to launch these Ether ETFs.
Analysts predict significant inflows, with estimates ranging from $15 billion to $20 billion within the first year of trading.

The Securities and Exchange Commission (SEC) has greenlit the trading of spot ether (ETH) exchange-traded funds (ETFs) starting next Tuesday.

SEC Approves Spot Ethereum ETF Trading

The approval, as reported by Bloomberg’s ETF analyst Eric Balchunas, marks a significant milestone for the cryptocurrency market.

According to a Reuters report dated July 15, SEC approval is contingent upon the applicants submitting final offering documents to the regulator by the end of this week. Among those set to launch their Ether ETFs are BlackRock, Franklin Templeton, VanEck, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy.

Sources indicate that SEC officials have informed one issuer that there are no further comments on the recently submitted S-1 filings, provided that final versions are submitted by Wednesday. Consequently, these funds can be listed on exchanges by Tuesday, July 23. A second source mentioned that Ethereum ETF trading might commence on Tuesday, following the ETFs’ effectiveness on Monday.

The issuers, who submitted amended S-1 documents last week, have yet to reveal specific details, including management fees. However, VanEck and Invesco Galaxy have disclosed their fee structures.

Analysts Predict Significant Inflows for New Ether ETFs

Ethereum, the second-largest cryptocurrency by market capitalization, has long been considered a prime candidate for an ETF. Following the successful launch of spot Bitcoin ETFs in January, numerous financial institutions have pursued SEC approval for an Ether ETF, which allows investors to speculate on Ethereum’s price without directly purchasing the cryptocurrency.

Bitwise’s chief investment officer, Matt Hougan, anticipates that the spot Ethereum ETF trading could draw up to $15 billion in inflows within the first 18 months. Steno Research predicts that inflows could reach $20 billion in the first year.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.