FameEX Hot Topics | SEC Grants ‘Preliminary Approval’ to Three ETH ETF Issuers: Report

The United States Securities and Exchange Commission (SEC) has reportedly granted "preliminary approval" to at least three asset managers for their spot Ether exchange-traded funds (ETFs), suggesting that these funds might begin trading as early as next Tuesday. According to a report from Reuters on July 15, final SEC approval now depends only on the applicants submitting their final offering documents by the end of this week. The firms named in this initial round include BlackRock, Franklin Templeton, and VanEck.

In addition to these, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also poised to launch their Ether products next week. An industry source informed Reuters that all eight spot Ether ETFs are slated to launch simultaneously, mirroring the approach taken by the SEC with spot Bitcoin ETFs.

As part of the preparation process, the SEC has issued final instructions to asset managers on the launch of these ETFs. Eric Balcunhas, a Bloomberg ETF analyst, revealed that the SEC has directed issuers to submit their final S-1 filings by July 16. He noted that these filings must include the fees associated with their spot Ether ETFs. Balcunhas anticipates that the SEC will officially approve these S-1s next Monday after the close of trading, allowing the ETFs to commence trading on Tuesday, July 23.

This detailed feedback follows an earlier round of feedback on the S-1 filings delivered by Gary Gensler's SEC in late June, approximately five weeks after the SEC approved the 19b-4 filings on May 23.

Katherine Dowling, Bitwise’s chief compliance officer, recently commented on the progress, noting a reduction in issues being discussed back and forth between the issuers and the SEC. "We’re close to the finish line on the launch," Dowling expressed optimism on July 9. Matt Hougan, Bitwise's chief investment officer, speculated that the spot Ether ETFs could draw up to $15 billion in inflows within their first 18 months, roughly matching the success of spot Bitcoin ETFs launched six months prior.

If approved, the spot Ether ETFs are set to be listed on major exchanges including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. Currently, Ether is trading at $3,484, marking 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.