SEC Provisionally Greenlights Ethereum ETFs, Opening Doors to Mainstream Crypto Investing

The U.S. Securities and Exchange Commission (SEC) has provisionally approved at least three Ethereum ETH/USD-based exchange-traded funds, with trading expected to commence as early as July 23. This development comes as a significant boost for the cryptocurrency industry’s efforts to bring digital assets into mainstream investing. The approval of these ETFs is contingent on the applicants submitting final offering documents to regulators by the end of this week, with all eight applications anticipated to launch simultaneously.

Industry sources, as cited in a Reuters report, revealed the latest progress in the approval process for Ethereum-based ETFs. Among the eight asset managers whose applications are likely to receive SEC approval next Monday are BlackRock, VanEck, and Franklin Templeton, with trading in the products set to start the following day. Bloomberg ETF analyst Eric Balchunas indicated that the SEC has requested final S-1 documents, including fee information, from the applicants by Wednesday, signaling a potential July 23 launch if no unforeseen issues arise.

Gemini, a cryptocurrency exchange, foresees a promising future for Ethereum with the imminent launch of U.S.-based spot ETFs. The company’s research report anticipates significant investor interest, projecting net inflows of up to $5 billion within the first six months of trading. This influx of capital could potentially drive Ethereum’s value in spot ETFs to $13-$15 billion by the end of the year. At the time of reporting, Ethereum was priced at $3,473.37, reflecting a 5.95% increase in the last 24 hours.