The launch of U.S.-based spot Ether exchange-traded funds (ETFs) for public trading appears to be on the horizon, though the exact timing remains uncertain, according to Katherine Dowling, chief compliance officer at Bitwise.
In a July 9 interview with Bloomberg, Dowling noted that the back-and-forth between issuers and the SEC regarding S-1 amendments is slowing down, and that suggests the launch of these funds is approaching. These Form S-1s contain important information about issuers and their planned securities and are currently awaiting approval from the SEC. The Fund issuers have been in this waiting phase for six weeks after the regulator approved multiple 19b-4 filings on May 23.
“We’re seeing in the S-1 amendments that there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC. So that points all signs in the direction that we are close. We’re close to the finish line on the launch,”
Dowling stated.
The SEC Chair, Gary Gensler, had recently projected that the spot Ether ETFs would launch sometime this summer. However, Dowling humorously remarked on the varying definitions of “summer:”
“Everyone has a different definition of summer. It’s been a little bit of a long, hot summer for the issuers waiting.”
Dowling also mentioned the SEC’s openness to discussions about non-Bitcoin and Ether products, describing their communication as “quite welcoming.”
However, despite this positive outlook, Dowling expressed doubt about the approval of a third spot cryptocurrency ETF under Gensler’s leadership, even as the Chicago Board Options Exchange (CBOE) recently filed applications for spot Solana ETFs on behalf of VanEck and 21Shares.
On May 23, 2024, the SEC approved eight proposals for spot Ethereum ETFs from major U.S. asset managers, including Grayscale, VanEck, Blackrock, and ARK Investments/21Shares. These ETFs are set to be listed on Nasdaq, NYSE ARCA, and CBOE BZX.
Bitwise’s chief investment officer, Matt Hougan, projects that spot Ether ETFs could attract up to $15 billion in inflows within their first 18 months of trading, mirroring the performance of spot Bitcoin ETFs launched six months prior.
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