Three Issuers Recieve Preliminary Approval from SEC for Spot Ethereum ETF Launches
According to a report from Kaiko, Ethereum could surpass Bitcoin in performance following the launch of the highly anticipated spot-based Ethereum ETFs in the United States
Image: Shutterstock
The United States Securities and Exchange Commission (SEC) has reportedly granted preliminary approval to at least three of the eight prominent crypto asset companies seeking to launch spot-based Ethereum exchange-traded funds (ETFs). The Ether ETFs are set to begin trading next Tuesday, July 23, marking a significant development in the crypto world and a major step forward in the ongoing efforts to bring Ethereum ETFs to the U.S. market.
According to various reports, the SEC has provided the initial approval for BlackRock, VanEck, and Franklin Templeton. This initial approval sets the stage for the potential launch of the first-ever spot-based Ethereum ETFs in the United States. Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in line to launch their Ether products soon, further expanding the crypto market.
Upon final approval, these spot ETFs would provide investors with a regulated and potentially profitable way to gain exposure to Ethereum without directly owning the crypto. Ethereum is the second largest cryptocurrency in the global market after Bitcoin, making it a promising investment option.
Bitwise’s chief compliance officer, Katherine Dowling, noted that they have observed a decrease in the number of issues raised by the SEC during the amended S-1 filing process, implying that the applications are nearing the final steps of the approval process. Bitwise’s chief investment officer, Matt Hougan, also speculated that spot Ethereum ETFs could potentially attract up to ₹1,500 crores within the initial year of trading. SEC’s approval of several Bitcoin futures ETFs in 2021 has seen substantial growth and acceptance since its launch.
ETH is trading around ₹2,83,900, down by 2.56 percent over the last 24 hours. The likely approval of Ethereum ETFs would allow them to be listed on major exchanges, including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. This move could open up a broader range of investment opportunities, further driving its adoption in the global market.
