The United States Securities and Exchange Commission (SEC) has given final approval for several spot Ethereum ETFs, paving the way for them to begin trading on Tuesday, July 23. This decision comes after the SEC cleared the registration forms for spot Ethereum ETFs from major firms such as 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy. Additionally, registration for the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH Trust) were also approved.
These firms had previously received SEC approval for their 19b-4 forms in May, which was a necessary step in the process. However, the finalization of their registration statements was required before they could officially launch their Ethereum ETFs. Bloomberg Senior ETF Analyst Eric Balchunas confirmed the approval in a tweet, stating that the spot Eth ETFs have been made effective by the SEC and that all systems are go for the launch on July 23.
Earlier this year, spot Bitcoin ETFs were approved by the SEC and have since attracted billions of dollars in investment, with over $17 billion in total inflows. However, analysts predict that Ethereum ETFs may not see the same level of demand. Following the announcement of the SEC approval, Ethereum’s price experienced a slight drop of about 0.6%, currently trading at $3,443 according to CoinMarketCap.
This drop in price aligns with some analysts’ predictions, such as Wintermute’s projection of “lower-than-expected demand” for Ethereum ETFs. It seems that the initial excitement surrounding Ethereum ETFs may not translate into immediate, significant inflows, unlike the strong demand seen for spot Bitcoin ETFs.
Despite the potential challenges, the approval of spot Ethereum ETFs by the SEC marks a significant milestone for the cryptocurrency industry. As trading begins on July 23, market participants will be closely monitoring the performance of these ETFs and assessing the level of investor interest in Ethereum as an investment asset.