According to CryptoPotato, the US Securities and Exchange Commission (SEC) is expected to approve the latest modifications to the spot Ethereum ETFs by July 4. This comes as discussions between asset managers and regulators are nearing their conclusion. Eight asset managers, including BlackRock, Franklin Templeton, and Grayscale Investments, are reportedly in the final stages of these discussions. Many of these firms launched spot Bitcoin ETFs in January after a decade-long struggle with regulators. Grayscale is now looking to convert an existing trust into an ETF.
Executives from two of the firms involved have reportedly told Reuters that the process of tweaking the documents has significantly progressed, with only minor issues remaining to be resolved. These issues must be addressed before the funds can be launched. The approval is expected to be no more than a week or two away, according to another lawyer. This timeline aligns with Bloomberg’s ETF analyst Eric Balchunas’ earlier prediction that the spot Ethereum ETF could be approved before the July 4th US holiday, potentially by July 2nd.
Despite speculation about the launch date, the SEC and its Chair Gary Gensler have remained tight-lipped. In a recent interview with Bloomberg, Gensler expressed optimism about approving these investment vehicles but did not provide a specific timeline. He hinted that these funds might go live during the summer. Last month, the regulatory watchdog approved the 19b-4 forms. Currently, the SEC and the issuers are working on S-1 filings, which must be approved before these products can start trading.
According to Bitwise’s prediction, spot Ethereum ETFs are expected to attract over $15 billion in net inflows within their first 18 months in the US market. Bitwise’s CIO Matt Hougan based his estimate on Bitcoin ETF data and Ethereum’s market size relative to BTC. Currently, the market cap of the world’s largest digital asset is around $1.26 trillion, while Ethereum’s is $432 billion, resulting in a 3:1 ratio. Almost $56 billion of Bitcoin’s total market cap is invested in the spot Bitcoin ETFs of the US, a figure Hougan anticipates will grow to $100 billion by the end of 2025.
