According to industry sources, Spot Ethereum (ETH) ETFs will launch within a week

Ether spot exchange-traded funds (ETFs) are expected to begin trading on July 23, according to a Reuters report.

Sources also mention that the US Securities and Exchange Commission (SEC) has granted preliminary approval for at least three of the eight asset managers to release spot Ether ETFs.

Will Spot Ether ETFs Start Trading Next Week?

Nate Geraci, president of ETF Shop, highlighted this development in a post on X. He noted that the SEC has given preliminary approval to at least three of the eight issuers of spot ETFs to begin trading next Tuesday, and that all eight are expected to launch. simultaneously

Reuters: The SEC has given “preliminary approval” to at least three of eight spot ETF issuers to begin trading next Tuesday…

However, all eight are expected to launch at the same time. https://t.co/ngACRMnjJr pic.twitter.com/BJfuqR8Ju9

— Nate Geraci (@NateGeraci) July 15, 2024

This statement followed his post on July 15, where he optimistically predicted: “Welcome to Eth ETF approval week… I say it. I don’t know anything concrete; I can’t find any good reason for more delay at this time. Emitters are ready for launch.”

Prominent asset managers including BlackRock, VanEck and Franklin Templeton are expected to receive SEC approval on July 22, and trading is expected to begin the next day, the sources said. However, final approval of these spot ETFs is dependent on the applicants submitting their final offering documents to the SEC by the end of this week.

The journey to timely approval of the Ether ETF began in September with low initial expectations due to discouraging comments from the SEC. However, the agency’s surprise approval of the necessary rule changes in May and SEC Chairman Gary Gensler’s acknowledgment of the grayscale ruling’s impact set the stage for the planned launch .

Experts predict more modest inflows

The approval of Ether ETFs follows the SEC’s previous reluctance due to concerns about market manipulation. The agency’s position changed following a court challenge by digital asset manager Grayscale Investments, which led to the approval of nine spot Bitcoin ETFs in January.

According to data from Morningstar Direct, these ETFs gained quite quickly, attracting roughly $6.6 billion in assets in the first three weeks of trading and achieving net inflows of $33.1 billion by the end of June.

Martin Leinweber, digital asset product strategist at MarketVector Indexes, predicts more modest inflows and higher price volatility for Ether compared to Bitcoin due to Ether’s smaller market size and trading volumes. According to data from CoinGecko, Bitcoin’s market cap is just over $1 trillion, while Ether’s is around $359 billion.

“It’s important to temper expectations,” Leinweber advised. Despite Ether’s smaller market size, Galaxy Research’s projects spotting ether ETFs could still attract billions of dollars in monthly inflows. Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, added that Ether spot ETFs should not match Bitcoin ETF spot entries to be considered successful.

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