The U.S. Securities and Exchange Commission (SEC) looks set to greenlight spot Ethereum ETFs. Industry insiders hint that approval could drop as soon as July 4.
Recent reports suggest that discussions between asset managers and regulators are in the final stretch. Eight major players, including BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, are vying for SEC approval. Most of these firms already got spot Bitcoin ETFs off the ground in January after years of back-and-forth with regulators.
Two executives, who didn’t want to be named, said that the process has boiled down to resolving “minor” issues in the offering documents. A lawyer involved in the process described it as being down to the finishing touches, estimating approval could come within a week or two.
Challenges facing Ethereum ETFs
January’s spot Bitcoin ETFs launch was a hit, raking nearly $38 billion by late June. However, analysts speculate the Ethereum ETFs’ debut might not be as explosive. Analyst Duncan thinks there’s a 77% chance ETH ETF trading starts next week.
He considers the market too bearish right now, setting the stage for a possible upswing if ETF flows surprise on the upside. However, as the crypto community holds its breath, the potential Ethereum ETF approval marks another step towards crypto going mainstream.
While Bitcoin often dominates the limelight, Ethereum’s growing importance in the crypto ecosystem makes these potential ETFs a big deal. Ethereum’s smart contract capabilities have made it the backbone of decentralized finance (DeFi) and NFTs, two of the hottest trends in crypto.
But it’s not all smooth sailing. Ethereum’s price has taken a hit lately, dropping over 13% this month alongside an 11% dip in Bitcoin, according to CoinMarketcap. This slump might impact initial enthusiasm for the ETFs, but it could also present an opportunity for investors eyeing a potential rebound.
