FameEX Hot Topics | SEC Gives 'Preliminary Approval' to Three ETH ETF Issuers: Report

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), with potential for these funds to start trading as early as next Tuesday. A report from Reuters on July 15 indicated that final SEC approval is contingent on the applicants submitting their final offering documents by this week's end. Notable among the first round of approvals are BlackRock, Franklin Templeton, and VanEck.

Further, firms like Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also expected to launch their Ether products next week. An industry insider relayed to Reuters that all eight spot Ether ETFs are projected to debut simultaneously, echoing the SEC's prior approach with spot Bitcoin ETFs.

In preparation, the SEC has issued final guidelines to asset managers regarding the launch of these ETFs. Bloomberg ETF analyst Eric Balcunhas shared that the SEC has instructed issuers to submit their final S-1 filings by July 16. These filings must detail the fees tied to their spot Ether ETFs. Balcunhas predicts the SEC will formally approve these S-1s next Monday after market close, allowing the ETFs to officially begin trading on Tuesday, July 23.

This follows a series of feedback provided by Gary Gensler's SEC on the S-1 filings in late June, around five weeks after the SEC approved the 19b-4 filings on May 23.

Katherine Dowling, Bitwise’s chief compliance officer, recently noted a significant reduction in issues discussed between issuers and the SEC regarding the amended S-1 filings. "We’re close to the finish line on the launch," Dowling remarked optimistically on July 9. Matt Hougan, Bitwise's chief investment officer, estimated that the spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months, a figure comparable to the success of spot Bitcoin ETFs launched six months ago.

Pending final approval, the spot Ether ETFs are planned to be listed on major exchanges including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. Ether is currently trading at $3,484, showing a 6.7% increase over the last 24 hours.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.