Cryptocurrency industry is eagerly anticipating the first appearance of Ethereum Exchange Traded Funds (ETFs). The US Securities and Exchange Commission is likely to approve the trading of spot Ethereum ETFs as early as July 4. It is reported that this decision comes after discussions between regulatory agencies, asset management companies, industry leaks, and other related parties.
Gary Gensler, the chairman of the US Securities and Exchange Commission, previously stated that he is confident in the approval process for spot Ethereum ETFs. He noted that asset management companies are currently under pressure because they must provide full disclosures to make their registration statements effective. Despite work still needing to be done, Gensler stated that everything is progressing smoothly.
Recently, executives from companies awaiting approval revealed that the filing process now only needs to resolve “minor” issues. However, ETFs cannot be launched unless these filings are authorized. A lawyer for the issuer stated that the approval process is “in the final stages” and that “it might not be more than a week or two.”
How many asset management companies are seeking approval from the US Securities and Exchange Commission?
Currently, eight asset management companies are awaiting approval from the US Securities and Exchange Commission for Ethereum spot ETFs. These include BlackRock, VanEck, Franklin Templeton, Fidelity, ARK 21Shares, Invesco, Bitwise, and Grayscale Investments.
Matt Hougan, Chief Investment Officer of Bitwise, seems confident in the company’s bet. In a recent tweet, he stated that net inflows into Ethereum ETFs could reach a high point of $15 billion in the first 18 months alone. He also predicted that investors may invest in Bitcoin and Ethereum ETFs based on their respective market cap ratios. He pointed out that Ethereum ETP accounts for approximately 22% of all managed assets in the European and Canadian markets. In comparison, the proportion of Bitcoin ETP is about 78%.
Bernstein has stated that demand for Ethereum ETFs will be lower than for Bitcoin.
