SEC Nearing Approval for Ethereum Spot Price ETFs: What Investors Need to Know

The Securities and Exchange Commission is reportedly on the verge of approving exchange-traded funds linked to the spot price of Ethereum (CRYPTO: ETH), with discussions between asset managers and regulators nearing their end. The highly anticipated investment avenues could go up for listing as soon as July 4, according to a Reuters report.

Executives from two firms anonymously revealed that the process of amending the offering documents is nearly complete, with minor issues being resolved. A lawyer associated with one of the issuers stated that approval is likely just a week or two away.

Eight asset managers, including BlackRock, VanEck, and Grayscale Investments, are seeking SEC approval for the funds, following the success of funds tracking the spot price of Bitcoin (CRYPTO: BTC) in January, which attracted about $8 billion in assets. As of late June, these nine new products have nearly $38 billion in assets.

However, some ETF and cryptocurrency analysts believe the launch of new spot ether ETFs may be less impressive due to ether’s smaller market cap and trading volumes. Despite this, Bloomberg ETF analyst Eric Balchunas moved up the launch date for the ETFs to July 2, citing a “decent chance” the SEC would approve them before the holiday weekend.

SEC Chair Gary Gensler highlighted the smooth progress of ETF filings in a recent interview, indicating that the final decision lies with asset managers to make full disclosures for the registration statements to go into effect. While there is enthusiasm surrounding the launch, some analysts predict a potential 30% drop in Ether’s price.

At the time of writing, Ether was trading at $3,377.13, following a 1.06% drop in the last 24 hours. Stay tuned for updates on the approval of these new ETFs linked to the spot price of Ethereum.