The cryptocurrency industry is eagerly awaiting the arrival of Ethereum exchange-traded funds (ETFs). The US Securities and Exchange Commission (SEC) could approve Ether Spot ETFs as early as July 4. This follows discussions between regulators, asset managers, industry leaks, and other parties involved.
Positive SEC approach and industry expectations
SEC Chairman Gary Gensler has previously expressed confidence in the approval process for Ethereum Spot ETFs. He pointed out that asset managers are currently under pressure to provide full disclosures in their registration statements. Although there is still work to be done, Gensler declared that everything was progressing well.
Pressure on asset managers
Executives from companies awaiting approval recently revealed that the documentation process is at a point where only “minor” concerns need to be resolved. However, ETFs cannot be launched until these documents are cleared. A lawyer for the issuers said that the approval process was “in the final stages” and that it would “probably not take more than a week or two” before everything was finalized.
Which asset managers are awaiting SEC approval?
Currently, eight asset managers are awaiting SEC approval for an Ethereum Spot ETF. These include BlackRock, VanEck, Franklin Templeton, Fidelity, ARK 21Shares, Invesco, Bitwise and Grayscale Investments.
The confidence of major market players
Bitwise CIO Matt Hougan seems confident about his company’s bet. In a recent tweet, he suggested that net flows into Ethereum ETFs could reach $15 billion in just 18 months. He also predicts that investors could invest in Bitcoin and Ethereum ETFs according to a ratio based on their respective market capitalizations. He points out that Ethereum ETFs account for around 22% of all assets under management in European and Canadian markets, compared with around 78% for Bitcoin ETFs.
The imminent approval of Ethereum Spot ETFs by the SEC marks an important milestone for the cryptocurrency industry. With leading asset managers in the running and forecasts of massive capital flows, the future of Ethereum ETFs looks bright.
