The cryptocurrency industry is eagerly anticipating the debut of Ethereum exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission could potentially approve the trading of spot Ethereum ETFs as early as July 4th. It is reported that this comes after discussions between regulatory agencies, asset management companies, industry insiders, and other stakeholders.
SEC Chairman Gary Gensler has expressed confidence in the approval process for spot Ethereum ETFs. He noted that asset management companies are currently under pressure to provide full disclosure in order to make their registration statements effective. Despite work still needing to be done, Gensler has indicated that progress is going smoothly.
Recently, executives from companies awaiting approval revealed that the document preparation process currently only needs to address “minor” issues. However, ETFs cannot be launched unless these documents are authorized. A lawyer for the issuer mentioned that the approval process is “coming to a close stage,” adding that it “might not be more than a week or two.”
How many asset management companies are seeking approval from the U.S. Securities and Exchange Commission?
Currently, eight asset management companies are awaiting approval from the U.S. Securities and Exchange Commission for Ethereum spot ETFs. These include BlackRock, VanEck, Franklin Templeton, Fidelity, ARK 21Shares, JPMorgan, Bitwise, and Grayscale Investments.
Bitwise’s Chief Information Officer Matt Hougan seems confident in the company’s bet. In a recent tweet, he mentioned that net flows into Ethereum ETFs could potentially reach a peak of $15 billion within the first 18 months alone. He also predicted that investors may invest in both Bitcoin and Ethereum ETFs based on their respective market cap proportions. He pointed out that Ethereum ETPs account for about 22% of all managed assets in the European and Canadian markets, while Bitcoin ETPs make up around 78%.
Bernstein stated that the demand for Ethereum ETFs will be lower compared to Bitcoin.