The US SEC is potentially set to approve spot Ethereum ETFs by July 4, pending finalization of discussions between investment firms and regulators.
Several investment firms, including BlackRock and Grayscale, are eagerly awaiting SEC approval to launch these Ether ETFs. This move follows the successful introduction of spot Bitcoin ETFs in January, which marked the culmination of prolonged negotiations with regulators. Grayscale, in particular, aims to convert its existing Ethereum Trust into an ETF.
On May 23, the SEC approved 19b-4 filings from eight ETF applicants; however, these asset managers are still in the process of finalizing their Form S-1 submissions. These final filings must gain SEC approval before the ETFs can commence trading. Notably, two companies, Bitwise and Fidelity, have already revised and resubmitted their applications for these new ETFs.
Spot Ethereum ETFs Likely to Debut Before Independence Day
According to Reuters, executives from two firms indicated on Wednesday that the paperwork for the new ETFs is nearly complete. They mentioned that only a few minor details need to be sorted out before the launch can proceed.
A lawyer familiar with one of the issuers informed Reuters that they are in the final stages, adding that they are close to applying the “finishing touches.” The lawyer expressed confidence that final approval could be expected within the next week or two.
In a related development last week, Bloomberg’s ETF analyst James Seyffart speculated that spot Ether ETFs might be launched before July 4.
Ether ETFs Approval Process ‘Going Smoothly,’ Gensler Says
Meanwhile, SEC Chair Gary Gensler has refrained from specifying a timeline for the launch of spot Ethereum ETFs. Speaking at a Bloomberg conference on June 25, he noted that the process is progressing “smoothly.” Gensler emphasized the critical importance of asset managers ensuring comprehensive disclosure in their registration statements, a prerequisite for ETF approval.
“What is currently under review at a staff level are the registration statements, the disclosure statements,” Gensler clarified.
He continued, “Again, these disclosures are incredibly important. They play a crucial role in helping investors make informed investment decisions.”