The US Securities and Exchange Commission (SEC) is expected to approve the latest modifications to spot Ethereum ETFs by July 4. Talks between asset managers and regulators are almost done, with eight firms, including BlackRock, Franklin Templeton, and Grayscale Investments, in the final steps. Many of these firms launched spot Bitcoin ETFs in January after a ten-year struggle with regulators. Grayscale now wants to turn an existing trust into an ETF.
Executives from two firms involved told that the process of tweaking the documents has significantly progressed, with only minor issues remaining. These issues must be resolved before the funds can be launched. Approval is expected within a week or two, aligning with Bloomberg’s ETF analyst Eric Balchunas’ prediction that the spot Ethereum ETF could be approved by July 2nd, before the July 4th US holiday.
The SEC and its Chair, Gary Gensler, have stayed silent despite speculation about the launch date. In a recent Bloomberg interview, Gensler expressed optimism about approving these investment vehicles but did not provide a specific timeline, hinting that these funds might go live during the summer. Last month, the SEC approved the 19b-4 forms, and now they are working on S-1 filings, which must be approved before trading can begin.
Spot Ethereum ETFs could draw over $15 billion in net inflows within their first 18 months in the US market. Currently, the market cap of Bitcoin is around $1.26 trillion, while Ethereum’s is $432 billion. Almost $56 billion of Bitcoin’s total market cap is invested in US spot Bitcoin ETFs, a figure Hougan anticipates will grow to $100 billion by the end of 2025.
