The NYSE Arca has confirmed its approval to list and trade spot Ether exchange-traded funds (ETFs) from asset managers Grayscale and Bitwise.
According to documents filed with the United States Securities and Exchange Commission on July 22, the exchange has certified “its approval for listing and registration of the common units” of Grayscale Ethereum Trust and Bitwise Ethereum ETF.
These funds are still awaiting authorization from the securities regulator before they can debut, with analysts predicting a launch date of July 23.
Bloomberg ETF analyst James Seyffart commented on X, “We expect them to begin trading tomorrow.
That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone ‘effective.’”
On July 19, the Chicago Board Options Exchange confirmed the launch of five additional Ethereum-focused funds: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
These funds also require “regulatory effectiveness” from regulators before trading can commence.
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The SEC must approve the funds’ initial securities registration S-1 forms, which is the final step before trading can begin. Previously, on May 23, the SEC approved the issuers’ 19-b form proposing rule changes.
Retail users interested in purchasing Ether ETFs can do so through brokerages that list the funds, such as Robinhood or Fidelity.
This process is similar to buying and trading other ETFs and stocks. Management fees for most Ether ETFs are expected to range from 0.15% to 0.25%.
The approval and launch of these ETFs could pave the way for other altcoin ETFs, including those based on Solana’s native token, SOL.
Bloomberg ETF analyst Eric Balchunas noted, “Keep in mind after launch there are flows and then add’l ETH products I’m sure, then Solana, and then.. it’s probably never going to end. The dam has broken.”
Institutional demand for ETH might lead to a supply shortage.
A recent report from Kaiko highlighted that Ether’s 1% market depth is low, indicating reduced liquidity.
This could lead to increased price volatility and drive ETH’s price higher amid rising demand. Currently, the cryptocurrency is trading at $3,457, down 1.4% over the past 24 hours.
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