Spot Ethereum ETFs May Get SEC Approval by July 4 – Here\'s What It Means for ETH Price

The U.S. Securities and Exchange Commission (SEC) is on the verge of approving spot Ethereum ETFs, potentially as soon as July 4.

The U.S. Securities and Exchange Commission (SEC) is reportedly close to approving spot Ethereum ETFs, possibly as early as July 4, according to anonymous sources cited by Reuters.

The final stages of discussions between asset managers and regulators are underway, with BlackRock, VanEck, and Franklin Templeton among the key players awaiting the SEC’s green light.

A lawyer involved in the process told Reuters,

“We are down to the finishing touches,”

suggesting that the approval could come within a week or two. Executives from two firms confirmed that only minor issues remain, and once resolved, the ETFs can be listed and traded in the U.S.

Gary Gensler on Smooth SEC Approval Process for Ethereum ETFs

In recent comments, SEC Chair Gary Gensler touched upon the approval process for Ethereum ETFs, describing it as a smooth progression. He highlighted that the speed of the approval is largely determined by 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.”

Crucially, the SEC approved 19b-4 forms for eight Ethereum ETFs last month, advancing the process towards completion. Firms are now awaiting approval for their registration statements, or S-1s, before trading can commence.

Modest Impact Expected from Spot Ethereum ETFs

The launch of spot Ethereum ETFs is expected to influence the cryptocurrency market, although less significantly than the approval of spot Bitcoin ETFs.

According to analysts, the impact on Ether’s price 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 crucial 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, has predicted that the approval of spot Ethereum ETFs could come as early as July 2. His optimism is based on the recent comments and the overall pace of the approval process.

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

Ethereum’s Market Performance

In the market, Ether’s performance has seen recent fluctuations. At the time of writing, 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. However, over a longer timeframe, Ether has shown an increase of 80% since July 2023.

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.

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