The wait for a spot in the Ethereum ETF in the US might be nearing its end. Industry experts are increasingly confident of swift approval from the Securities and Exchange Commission (SEC) after several leading asset managers filed updated registration statements with the regulatory body.
BlackRock, Fidelity, VanEck, Franklin Templeton, 21Shares, and Grayscale all submitted their amended S-1 forms on July 8th, marking a significant step forward in the approval process. This follows the SEC’s earlier nod to 19b-4 filings, paving the way for these ETFs to start trading.
While some, like Grayscale and 21Shares, haven’t yet disclosed their fee structures in the updated filings, and Invesco Galaxy is yet to submit theirs, analysts predict their amendments are imminent. Notably, Bitwise included a fee waiver plan in its filing, hinting at a potential launch soon after the registration becomes effective.
Eric Balchunas, a Bloomberg Intelligence analyst, expects the SEC to provide further guidance shortly. Though a definitive launch date remains elusive, he believes July 18th could be a realistic target based on the current progress.
The potential approval of a spot Ethereum ETF has sent a wave of optimism through the crypto market. Experts view it as a watershed moment, offering institutional investors a secure and convenient path to gain exposure to Ethereum. This could significantly boost demand and liquidity for the world’s second-largest cryptocurrency.
“This trend underscores a positive outlook for the digital asset market,” says Matteo Greco, a research analyst at Fineqia. He anticipates increased mainstream adoption and rising investment flows with the launch of these ETFs.
However, some experts warn of potential volatility due to the anticipation surrounding these launches. Shubh Varma, CEO of Hyblock Capital, points to rising volatility expectations reflected in the Deribit Bitcoin Volatility Index (DVOL). He suggests investors might be adopting a wait-and-see approach, potentially impacting market activity and price stability.
Despite these concerns, the market has reacted favorably. Ethereum prices have climbed over 5% in the last 24 hours, reflecting the positive sentiment surrounding the anticipated launch of spot Ethereum ETFs.