SEC Might Approve Ethereum ETFs Trading by July 4: Industry Awaits Final Decision

The US Securities and Exchange Commission (SEC) is expected to approve the trading of spot Ethereum exchange-traded funds (ETFs) by July 4, as reported by Reuters, citing industry executives and participants. This aligns with predictions from Bloomberg’s Senior ETF Analyst Eric Balchunas, who forecasted an early July launch for these financial instruments.

For the Ethereum ETFs to commence trading, the SEC must greenlight the S-1 forms filed by the prospective issuers. 

The forms provide vital information about the new securities, such as the fund's structure, management, investment strategy, and methods for tracking performance. Both the 19b-4 and S-1 forms need SEC approval for the Ether ETF to be publicly available for trading.

The SEC's discussions with asset managers regarding the spot Ether ETF have reportedly entered their final stage, although official confirmation is yet to be made.

Eight asset managers, including financial giants like BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, seek approval to launch spot Ether ETFs. Each manager has filed the necessary documents, including the 19b-4 forms, which the SEC approved last month.

Final Touches

Anonymous executives from two involved firms have confirmed that the process of amending the S-1 forms is underway to address minor issues. An anonymous lawyer working on one of these amendments stated that it was "down to the finishing touches" and anticipated that approval is "probably not more than a week or two away."

On Tuesday, Acting SEC Chair Gary Gensler assured that the process for launching these spot Ethereum ETFs was “going smoothly.” The same day, VanEck took a significant step by filing a Form 8-A for its Ethereum ETF, indicating readiness for exchange listing. 

The SEC’s anticipated approval of Ethereum ETFs follows its landmark decision to approve Bitcoin ETFs in January, which ended a decade-long wait for many companies. The new spot Bitcoin ETFs quickly gained popularity, amassing nearly $38 billion in assets. 

However, the Grayscale Bitcoin Trust, which converted its $27 billion trust fund to an ETF, saw $17.8 billion in net outflows.