Reuters reported, citing sources familiar with the matter, that the approval of the Ethereum spot ETF has reached its final stages and awaits the effectiveness of its registration statement (S-1) to commence trading. However, compared to the Bitcoin spot ETF launched earlier this year, the Ethereum ETF appears to be generally viewed unfavorably, with expectations of potentially negative or downward market reactions.
Insiders: Only minor issues remain
SEC’s ambiguous stance
Dim prospects for Ethereum spot ETF issuance
According to anonymous industry lawyers, negotiations between asset management firms and regulatory bodies regarding the launch of the Ethereum spot ETF have entered their final stages:
Currently, the documents are in the final “polishing stage,” and approval could be completed within the next week or two, with the earliest possible approval date being July 4.
This aligns closely with predictions from Bloomberg ETF analyst Eric Balchunas.
(VanEck triggers fee war, Ethereum spot ETF expected to launch on July 2)
Reportedly, the applying
issuers
include BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, among eight asset management companies.
Executives from two other companies also revealed that the process of amending the offering documents has progressed to the stage where only “minor issues” need to be resolved.
In response, the U.S. Securities and Exchange Commission (SEC) did not elaborate further, emphasizing that the launch date depends on the speed of the issuers’ responses to regulatory issues.
However, SEC Chairman Gary Gensler also indicated during Tuesday’s Bloomberg Investment Summit:
“I don’t know the exact timing of the approval, but progress is proceeding smoothly.”
(Gary Gensler: Ethereum spot ETF approval progress “proceeding smoothly”)
Earlier this year, the U.S. launched 11 Bitcoin spot ETFs, which saw trading volumes surpassing
$10 billion
within two days of listing. As of today, the product has accumulated nearly
$51.4 billion
in assets under management (AUM).
Regarding the issuance of the Ethereum spot ETF, most institutional investors and ETF analysts believe that its performance may not be as remarkable.
Due to the ETF’s lack of staking functionality affecting spot conversion demand, and differences in product value and nature compared to Bitcoin,
research institutions Bernstein
and JPMorgan both expressed pessimism towards the Ethereum spot ETF, suggesting that the initial market response could be negative.
(Bernstein, JPMorgan caution that Ethereum spot ETF demand falls far short of Bitcoin’s – What are their perspectives?)
Especially this month, both Bitcoin and Ether saw near-double-digit percentage declines, coinciding with sell pressures such as the distribution of Bitcoin from Mt. Gox and the sequential release of Bitcoin seized by U.S. and German governments.
The launch of the Ethereum spot ETF may inject new momentum into the cryptocurrency market, but its impact remains to be seen.
(BTC under heavy selling pressure, U.S. and German governments sequentially release Bitcoin, triggering a dumping wave?)
ETF
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Ethereum spot ETF