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SEC nears approval of Ether ETFs, trading expected to start next week

Published 2024-07-15, 04:48 p/m
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Investing.com - The US Securities and Exchange Commission (SEC) signaled on Monday that the approval of Ether exchange-traded funds (ETFs) is likely to occur by July 22nd, according to industry insiders.

US regulatory authorities reportedly informed at least three of the eight firms that they are likely to receive final approval to introduce these new products next Tuesday, July 23. This information comes from three sources within the industry.

The industry insiders stated that the regulators have instructed them to submit their final offering prospectuses by the end of this week. If these submissions meet the necessary criteria, the SEC is expected to provide issuers with a formal "effective date" for the new products on Monday, July 22.

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Eric Balchunas, a Senior ETF Analyst at Bloomberg, shared on social media platform X that the launch of the new spot Ether ETFs is projected for July 23.

According to Balchunas's post, the SEC has now responded to issuers, instructing them to return their final S-1 documents, inclusive of fees, by Wednesday. The regulator is then expected to request effectiveness on Monday after market close, paving the way for the anticipated Tuesday launch.

Major Wall Street players, including BlackRock Inc (NYSE:BLK) and Fidelity National Financial Inc (NYSE:FNF), have been in discussions with the SEC for weeks, aiming to launch their spot Ether ETFs as soon as possible.

The new financial products have been inching closer to a likely US launch after the SEC approved key regulatory filings from applicants in late May. However, before these new offerings can be traded on exchanges, the SEC must also approve the applicants' S-1 filings.

The push for Ether ETFs comes in the wake of the successful launch of spot Bitcoin ETFs in January. Since then, numerous financial institutions have been vying for the green light to introduce an ETF that allows investors to speculate on Ethereum's price without having to purchase the cryptocurrency directly.

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