According to a Reuters report, spot Ethereum exchange-traded funds (ETFs) are expected to begin trading on July 23. The U.S. Securities and Exchange Commission (SEC) has granted preliminary approval for at least three of eight asset managers to release these spot Ether ETFs.
Nate Geraci’s Insights
Nate Geraci, President of the ETF Store, highlighted this development in a post on X. He noted that the SEC has given preliminary approval to at least three of the eight spot Ether ETF issuers to begin trading next Tuesday, with all eight expected to launch simultaneously.
This statement followed his optimistic July 15 post, where he predicted the approval, stating, “Welcome to spot Eth ETF approval week… I’m calling it. I don’t know anything specific; I just can’t come up with a good reason for any further delay at this point. Issuers are ready for launch.”
Prominent Asset Managers and Final Approvals
Sources indicate that prominent asset managers, including BlackRock, VanEck, and Franklin Templeton, are expected to receive SEC approval by July 22, with trading anticipated to begin the following day. However, final approval for these spot Ether ETFs depends on the applicants submitting their final offering documents to the SEC by the end of this week.
Journey Toward Approval
The journey toward spot Ether ETF approval began in September with low initial expectations due to discouraging SEC feedback. However, the agency’s surprise approval of necessary rule changes in May and SEC Chair Gary Gensler’s acknowledgment of the Grayscale ruling’s impact set the stage for the anticipated launch.
Experts and Market Predict More Modest Inflows
Experts anticipate more modest inflows and greater price volatility for Ether compared to Bitcoin due to Ether’s smaller market size and trading volumes.
Despite Ether’s smaller market size, Galaxy Research projects that spot Ether ETFs could still attract monthly inflows of $1 billion. Experts say that spot Ether ETFs wouldn’t need to match spot Bitcoin ETF inflows to be considered successful.
