SEC Got Back to Issuers; Spot Ethereum ETF Approving This Week?

What’s Actually Going on in SEC’s Office?

On July 15, The US Securities and Exchange Commission (SEC) was actively working on the spot Ethereum exchange-traded funds (ETFs) and has told issuers to submit their final S-1 forms before the end of this week. Once approved, the issuers can initiate trading on Tuesday, July 23.  

This time, the commission requested the issuers to provide full details, including how much management fee they will be charging investors. As of now, only VanEck and Invesco Galaxy have provided their fee details, while the rest of the issuers have not yet disclosed theirs. Invesco Galaxy will charge investors a 0.25% management fee, whereas VanEck is supposed to charge a 0.20% management fee.  

Submitting the final S-1 forms by the end of this week will help the SEC announce its final decision by Monday, July 22. Moreover, among the eight asset managers, BlackRock, VanEck, and Franklin Templeton hold a strong position and are anticipated to receive a green flag from the SEC. 

Furthermore, many ETF analysts presented their views on the SEC’s move.     

Expert’s Opinion on Spot Ethereum ETFs

Eric Balchunas, senior ETF analyst at Bloomberg said that the SEC is finally getting back to the issuers and requested to submit the form. 

Source: X

“This is provided no unforeseeable last-minute issues of course!”, he added.

James Seyffart, another analyst at Bloomberg seconded Balchunas’s post, stating that there are high chances of the ETF approval next week. Interestingly, the approval will be launching during the same week that the Bitcoin Conference 2024 gets underway in Nashville, scheduled for 25-27 July. 

Additionally, some of the strategists predicted that spot Ethereum (ETH) ETFs would perform better when compared with spot Bitcoin ETFs which were approved by the SEC in January 2024. 

Martin Leinweber, a digital asset product strategist at MarketVector Indexes, expects the initial inflows into ETH ETFs to be less substantial than those for Bitcoin. He attributes this to ETH’s relatively smaller market size and lower trading volumes. However, market analysts are hopeful that ether ETFs will still draw considerable interest from investors.

Any Impact on Ethereum Price?

At press time, Ethereum price was trading at $3,424.41, after an intraday spike of 2.46% with $411,639,054,720 in market cap and $18,064,465,503 in 24-hour volume. In the past week, the ETH price surged from $3.082.2 on July 9 to $3,491.74, before reaching the current price.  

Source: CoinMarketCap

The Ethereum news is making waves in the crypto industry and is foreseen to attract more and more investors soon. 

Conclusion

The SEC is actively working on supporting spot Ethereum ETFs, with issuers expected to submit their final S-1 forms by the end of this week. The Ethereum ETF approval date is anticipated by July 22, allowing trading to begin on July 23. Analysts are optimistic about the potential impact of these ETFs, despite initial inflows being expected to be modest compared to bitcoin ETFs. The recent price surge of Ethereum reflects growing investor interest and expectations.