The US Securities and Exchange Commission (SEC) may approve the launch of exchange-traded funds (ETFs) tied to the spot price of the Ethereum cryptocurrency as early as July 4, as negotiations between asset managers and regulators enter their final stages, Reuters reports, citing several sources.
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Eight asset managers, including BlackRock, VanEck, Franklin Templeton and Grayscale Investments, are seeking SEC approval to launch an Ethereum ETF — most of which launched spot bitcoin ETFs in January, a move that stock markets hailed as a victory in a decade-long battle with regulators. The Ethereum ETF approval process has progressed to the point of resolving only minor issues, according to two executives who asked to remain anonymous. The SEC declined to comment, but in early June, Commission Chairman Gary Gensler told Reuters that the timing of the ETF launch would depend on how quickly issuers respond to the regulator’s requests.
January’s launch of Bitcoin-linked funds turned out to be one of the most successful in the ETF market, raising about $8 billion. As of the end of June, the assets of nine funds amounted to about $38 billion, although the assets of Grayscale Bitcoin Trust, which converted the trust fund into an ETF, decreased from $27 to $17.8 billion. The launch of Ethereum-ETF is unlikely to be as impressive – we are talking about the second-largest cryptocurrency with more modest trading volumes, analysts remind. Bitcoin has lost 9.8% in price since the beginning of the month, and Ethereum – 11%. Bitcoin dynamics traditionally affect the price of Ethereum.
The SEC has already approved the rule changes needed for listing and oversight of new products on the New York Stock Exchange, Nasdaq, and Cboe. This means that once the Ethereum ETF is approved at the SEC level, actual trading of the asset could begin within 24 hours.