Ethereum ETFs to launch July 23 after US SEC preliminary approval
TLDR
- Ethereum Exchange Traded Funds (ETFs) trading to commence by July 23 after SEC approval from key issuers Blackrock, VanEck, and Franklin Templeton.
- Preliminary approval granted to three out of eight asset managers proposing Ethereum ETFs, with final offering documents due by end of the week.
- Expected simultaneous launch of all eight issuers, including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy after SEC approval ahead of proposed trading date next week.
Spot Ethereum Exchange Traded Funds (ETFs) are set to begin trading by July 23 after the United States Securities and Exchange Commission (SEC), led by Gary Gensler, gave preliminary approval to some of the proposed issuers.
The SEC granted preliminary approval to three of the eight asset managers proposing to issue Ethereum ETFs. These are Blackrock, VanEck, and Franklin Templeton. This approval is contingent on the applicants submitting their final offering documents to regulators before the end of this week.
All eight are expected to launch simultaneously, according to credible sources. The other issuers, including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy, are also anticipated to receive their preliminary approval from the SEC ahead of next week’s proposed trading date.
Key Takeaways
Investors who are likely to buy spot ETFs, as opposed to the respective tokens, may view Bitcoin and Ether as similar enough to split their allocations between the two cryptocurrencies, rather than seeing them as distinct assets. According to a research report by Citi, spot Ether ETFs could see net inflows at just 30%-35% the levels of spot Bitcoin (BTC) equivalents, with distribution skewed to the downside. This projection translates to a range of $4.7 billion to $5.4 billion of net inflows over six months. However, Citi also noted that the actual inflows and the beta of Ether returns relative to such flows could be lower than the analysis suggests.
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