Spot Ethereum ETF Approval by SEC Could be Imminent

YEREVAN ( — The U.S. Securities and Exchange Commission (SEC) is on the verge of approving spot Ethereum ETFs, potentially as soon as July 4. This information comes from anonymous sources cited by Reuters, indicating that discussions between asset managers and regulators are in their final stages. Key players in this space include BlackRock, VanEck, and Franklin Templeton, all of whom are awaiting the SEC’s green light.

A lawyer involved in the process mentioned,

“We are down to the finishing touches,”

suggesting that the approval could happen within a week or two. Notably, executives from two firms confirmed that only minor issues remain unresolved. Once these are addressed, the ETFs can be listed and traded in the U.S.

Gary Gensler on Smooth SEC Approval Process for Ethereum ETFs

Gary Gensler, the acting SEC Chair, recently commented on the approval process, noting that it is progressing smoothly. He emphasized that the speed of the approval largely depends on how quickly issuers respond to the regulator’s queries. Gensler stated,

“It’s really about the asset managers making the full disclosure so that those registration statements can go effective.”

Critically, last month, the SEC approved 19b-4 forms for eight Ethereum ETFs, bringing the process closer to completion. Moreover, firms are now waiting for their registration statements, or S-1s, to be approved before trading can commence.


Modest Impact Expected from Spot Ethereum ETFs

The launch of spot Ethereum ETFs is expected to affect the cryptocurrency market, though less significantly than spot Bitcoin ETFs. Analysts suggest that the effect on the price of Ether will be relatively smaller due to its lesser market share compared to Bitcoin.

James Butterfill, head of research at CoinShares, highlighted this point, stating,

“Ethereum is not the same size in terms of market cap, nor does it have the same volumes.”

This perspective is important for investors considering the potential market dynamics post-approval.

Eric Balchunas Predicts July 2 Approval for Spot Ethereum ETFs

Eric Balchunas, a senior ETF analyst at Bloomberg, predicted that the approval of spot Ethereum ETFs could occur by July 2. His optimism is based on the recent comments and the overall pace of the approval process.

SEC Spot Ether ETF Approval Update from Eric Balchunas (Source:
SEC Spot Ether ETF Approval Update from Eric Balchunas. Source. X

The SEC’s recent approval initially drew approximately $8 billion in assets. Moreover, as of late June, the total assets in these new products reached nearly $38 billion. This success sets a precedent and provides a hopeful outlook for the Ethereum ETFs.

Leading Spot Bitcoin ETFs by AUM (Source: The Block)
Leading Spot Bitcoin ETFs by AUM. Source: The Block

Ethereum’s Market Performance

Ether’s performance in the market has seen fluctuations recently. As of now, Ether is priced at $3,370.65, with a market cap of $404 billion. Over the past seven days, the value of Ether has decreased by nearly 6%, and it has fallen by almost 14% in the last 30 days. Historically, despite these recent declines, Ether has shown an 80% increase since July 2023.

Ethereum Price Surge and Upgrades Timeline (Source: CoinMarketCap)
Ethereum Price Surge and Upgrades Timeline. Source: CoinMarketCap

Notably, the trading volume of Ether has also seen a drop of 5.40% in the past 24 hours, reaching $11.4 billion. Additionally, DefiLama data indicates that Ethereum holds over $58.78 billion in total value locked (TVL), reflecting its significant position in the decentralized finance sector.

Ethereum Market Metrics: Total Value Locked and More (Source: DefiLlama)
Ethereum Market Metrics: Total Value Locked and More. Source: DefiLlama

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