SEC Gives Preliminary Approval to BlackRock, Franklin Templeton, and VanEck for Spot Ether ETFs

The United States Securities and Exchange Commission (SEC) has reportedly given "preliminary approval" to BlackRock, Franklin Templeton, and VanEck for their spot Ether exchange-traded funds (ETFs). This development has raised expectations that these ETFs will begin trading as early as next Tuesday, according to Reuters.

In addition to BlackRock, Franklin Templeton, and VanEck, other firms like Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in line to launch their Ether products next week. 

The final approval depends on these applicants submitting their final offering documents to regulators before the end of this week. Sources indicate that all eight asset managers are expected to launch simultaneously.

Key Dates and Processes

The SEC has set a critical deadline for the submission of the final S-1 forms on Wednesday, which would clear the funds for launch on July 23. While the issuers have submitted amended S-1 documents, some details, such as management fees, are yet to be disclosed. 

VanEck and Invesco Galaxy are among the few that have revealed their fees so far. This information will be crucial for potential investors as they assess the cost of investing in these new financial products.

According to Bloomberg’s senior ETF analyst, Eric Balchunas, the SEC’s recent communication to the spot Ether ETF issuers has been pivotal in setting this timeline. If all goes as planned, trading in these products will begin on July 23, marking a significant milestone for the cryptocurrency industry.

Implications for Ethereum and Crypto Market

The potential listing of Ether ETFs on major exchanges like Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange is expected to further legitimize Ethereum. This move will likely increase Ethereum's accessibility to traditional investors, enhancing its position in the global financial market.

The launch of these ETFs is expected to coincide with the Bitcoin 2024 conference in Nashville, adding to the anticipation and excitement within the crypto community. 

Galaxy Research analysts predict that the spot Ether ETFs could attract inflows of up to $5 billion within the first six months, with Steno Research estimating up to $20 billion in the first year.

Ether's price increased 1.6% to $3,405 over the last 24 hours, according to CoinMarketCap data.