In a potential boon for the cryptocurrency industry, the Securities and Exchanges Commission (SEC) has reportedly given the green light for spot ether exchange-traded funds (ETFs) to begin trading next Tuesday, July 23rd.
According to sources familiar with the matter, the SEC has no outstanding comments on the recently submitted S-1 registration statements from prospective issuers. These S-1 documents, which detail the offering of a security, are a crucial step in the ETF approval process.
Issuers have been asked to submit their final versions of the S-1 documents by Wednesday, paving the way for potential effectiveness next Monday and a launch on Tuesday, July 23rd. This timeline is contingent on no unforeseen last-minute issues arising during the final stages.
The news comes after amended S-1 filings were submitted by issuers last week. Specific details regarding management fees remain undisclosed by many, with only a few companies like VanEck and Invesco Galaxy revealing their charges.
Analysts predict a significant influx of capital into these spot ether ETFs once they hit the market. Gemini, a crypto exchange, anticipates inflows of up to $5 billion within the first six months, while Steno Research projects a more aggressive figure of $20 billion in the first year.
Also Read: Ethereum To Moon? Kaiko Predicts ETH Outperformance vs. Bitcoin After Spot ETF Launch
The news of the potential launch next week positively impacted the cryptocurrency market. Ether (ETH) surged by as much as 7.3%, outperforming Bitcoin’s (BTC) 6% gain on Monday. The broader market index, CoinDesk 20, also climbed 5.6%.
This development marks a significant step towards wider institutional adoption of Ethereum and potentially the entire cryptocurrency space. The launch of spot ether ETFs could provide investors with a more regulated and potentially less volatile way to gain exposure to Ethereum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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