Insiders Ethereum Spot ETF Review Reaches Final Stage Expected Approval as Early as July 4th
According to Reuters, insiders reveal that the approval for the Ethereum spot ETF has reached its final stage, with only the effectiveness of its registration statement (S-1) pending before trading can commence. However, compared to the Bitcoin spot ETF issued earlier this year, the Ethereum ETF is generally viewed unfavorably and is expected to potentially elicit a negative or downward reaction in the market.
**Table of Contents**
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– Insiders: Only minor issues left
– SEC’s ambiguous stance
– General pessimism towards the issuance of the Ethereum spot ETF
An anonymous industry lawyer points out that negotiations between asset management firms and regulatory authorities regarding the launch of the Ethereum spot ETF have entered the final stage:
Currently, the documents have reached the final ‘polishing stage,’ and approval is likely to be completed within the next week or two, with the earliest approval expected on July 4th.
This aligns with the prediction of Bloomberg ETF analyst Eric Balchunas.
(VanEck sparks a fee war, Ethereum spot ETF expected to list on July 2nd)
It is reported that the
issuers
include eight asset management companies such as BlackRock, VanEck, Franklin Templeton, and Grayscale Investments.
Executives from two other companies also revealed that the process of amending the issuance documents has progressed to the stage where only ‘minor issues’ need to be resolved.
In response, the U.S. Securities and Exchange Commission (SEC) did not comment much, only emphasizing that the launch date depends on the issuer’s response speed to regulatory inquiries.
However, SEC Chairman Gary Gensler also stated at Tuesday’s Bloomberg Investment Summit:
I do not know the exact timing of the approval, but the progress is smooth.
(Gary Gensler: Ethereum spot ETF approval ‘progressing smoothly’)
Previously, the 11 Bitcoin spot ETFs launched in the U.S. in January this year broke through $10 billion in trading volume within two days of listing. As of today, the product has nearly $51.4 billion in assets under management (AUM).
Regarding the issuance of the Ethereum spot ETF, most investment institutions and ETF analysts believe that its performance may not be as impressive.
Due to the lack of staking features affecting spot conversion demand and differences in product value and essence from Bitcoin,
research institutions Bernstein
and JPMorgan Chase have both expressed pessimism about the Ethereum spot ETF, stating that the initial market reaction could be negative.
(Bernstein, JPMorgan Chase both shout Ethereum spot ETF demand far less than Bitcoin, what’s the difference?)
Especially this month, both Bitcoin and Ethereum have experienced nearly double-digit percentage declines, coinciding with the distribution of Bitcoin by Mt.Gox, as well as the successive transfer of seized Bitcoins by the German and American governments, adding to the selling pressure.
Whether the launch of the Ethereum spot ETF can inject new momentum into the crypto market remains to be seen.
(BTC selling pressure heavy, U.S. and Germany governments successively transfer out Bitcoin, the sell-off wave begins?)
ETF
SEC
Ethereum spot ETF
**Further Reading**
Coinbase sues SEC and FDIC: Failure to comply with providing documents, attempting to squeeze out the crypto industry
Gary Gensler: Ethereum spot ETF approval ‘progressing smoothly’
