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The United States Securities and Exchange Commission (SEC)
has reportedly given “preliminary approval” to at least three asset
managers for their spot Ether exchange-traded funds (ETFs). This development
has increased speculation that the ETFs will begin trading as early as next
Tuesday.
According to a July 15 report by Reuters, the SEC approval
is now only contingent on the applicants submitting final offering documents to
the regulator before the end of this week. The report cited three industry
sources.
Ether ETFs Launch Imminent
The asset managers mentioned in the report include
BlackRock, Franklin Templeton, and VanEck. Additionally, Fidelity, ARK
21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in the running to
launch their Ether products next week.
One source told Reuters that all eight spot Ether ETFs are
expected to launch simultaneously, similar to the SEC’s handling of spot
Bitcoin ETFs.
The SEC has reportedly delivered final instructions to asset
managers preparing to launch Ether ETFs. According to Bloomberg ETF analyst
Eric Balchunas, the Commission instructed issuers to submit their final S-1
filings by July 16. Balchunas noted that all applicants must state the fee
attached to their spot Ether ETFs when submitting their amended S-1 filings
this week.
Reuters’ report aligns with recent comments from Bitwise’s
chief compliance officer, Katherine Dowling, who said they have seen
“fewer and fewer issues” vetted back and forth between the issuers
and the SEC with the amended S-1 filings.
“So that points all signs in the direction that we are
close. We’re close to the finish line on the launch,” Dowling said on July
9.
Bitwise’s chief investment officer, Matt Hougan, speculated
that the spot Ether ETFs could attract up to $15 billion in inflows in the
first 18 months of trading. This is roughly the same amount that the spot
Bitcoin ETFs have attracted since launching six months ago.
S-1 Filings Await Approval
If approved, the spot Ether ETFs would be listed on the
Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.
Hougan also expects the SEC to officially approve the S-1
filings next Monday after trading hours close. This would allow the spot Ether
ETFs to officially start trading on Tuesday, July 23.
Gary Gensler’s commission delivered a first round of
feedback on the S-1 filings in late June, which came about five weeks after the
SEC approved the 19b-4 filings on May 23.
This article was written by Tareq Sikder at www.financemagnates.com.
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