The final stages of discussions between asset management companies and regulators may lead to the approval of the latest adjustments to an Ethereum spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) before July 4th.
In conversations with several industry insiders, Reuters observed that eight asset management companies, including BlackRock, Franklin Templeton, and Grayscale Investments, are entering the final stages. Many of these companies have been in a decade-long struggle with regulators, with several launching spot Bitcoin ETFs in January and Grayscale again working to convert existing trusts into ETFs.
Ethereum ETF to debut in July
Executives from two of the companies reported significant progress in the adjustment process to Reuters, with only “minor” issues remaining to be resolved before approval can be obtained once funding is in place.
Another lawyer indicated that approval is expected to come “in possibly no more than a week or two.”
The latest timeline aligns with a disclosure earlier this month by Bloomberg ETF analyst Eric Balchunas, who suggested that the Ethereum spot ETF could potentially receive approval before the U.S. holiday on July 4th, possibly by July 2nd.
While speculation has been widespread regarding the listing date, the U.S. Securities and Exchange Commission and its chairman, Gary Gensler, have remained tight-lipped. In an interview with Bloomberg earlier this week, Gensler expressed optimism about approving these investment tools, but did not provide a specific timeline, hinting that the funds could be put to use in the summer.
Last month, regulators approved the 19b-4 form. Currently, the U.S. Securities and Exchange Commission and issuers are working through S-1 filings, which must be approved before these products can begin trading.
Ethereum ETF could attract $15 billion in 18 months
According to Bitwise’s projections, an Ethereum spot ETF in the U.S. market is expected to attract over $15 billion in net inflows in the first 18 months.
Bitwise’s Chief Information Officer Matt Hougan’s estimate is based on Bitcoin ETF data and the market size of Ethereum relative to BTC. Currently, the world’s largest digital asset has a market value of approximately $1.26 trillion, while Ethereum’s market value is $432 billion, a ratio of 3:1.
Nearly $56 billion of the total market value of Bitcoin is invested in U.S. Bitcoin spot ETFs, and Hougan expects this number to grow to $100 billion by the end of 2025.