The United States Securities and Exchange Commission (SEC) has given final approval for several spot Ethereum ETFs, allowing them to begin trading on Tuesday, July 23.
On July 22, the SEC cleared the registration forms for spot Ethereum ETFs from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy. Additionally, registration from the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH Trust) were also approved.
Firms had previously received SEC approval for their 19b-4 forms in May, which was a necessary step. However, they needed their registration statements to be finalized before launching.
Bloomberg Senior ETF Analyst Eric Balchunas has also confirmed the approval in a tweet:
Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow’s 930am launch. Game on.
Earlier this year, spot Bitcoin ETFs were approved and have since attracted billions of dollars in investment, with over $17 billion in total inflows. However, analysts suggest that Ethereum ETFs might attract less demand.
Following the announcement, Ethereum’s price dropped slightly by about 0.6%, currently trading at $3,443 according to CoinMarketCap.
This drop in price seems to align with some analysts’ predictions, such as Wintermute’s projection, which expected “lower-than-expected demand” for Ethereum ETFs. This suggests that the initial excitement for Ethereum ETFs may not lead to immediate, significant inflows, unlike the strong demand seen for spot Bitcoin ETFs.
