Ethereum Spot ETF on the Horizon: Regulatory Approval Expected by July 4: Report — TradingView News

The Securities and Exchange Commission is reportedly close to allowing exchange-traded funds tied to the spot price of Ethereum ETHUSD.

What happened:Discussions between asset managers and regulators are nearing an end and the highly anticipated investment opportunities could be listed as soon as July 4, a Reuters report said on Wednesday.

Executives from two of the companies revealed anonymously that the process of changing the offering documents came down to ironing out minor issues. A lawyer associated with one of the issuers said approval would likely only come in a week or two.

Eight asset managers, including black rock, VanEckAnd Grayscale Investments who previously launched spot Bitcoin BTCUSD ETFs such as iShares Bitcoin Trust Fund I BITE, VanEck Bitcoin Trust HODLAnd Grayscale Bitcoin Trust GBTCare seeking SEC approval for the funds.

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Why is this important: The launch of funds tracking the spot price of Bitcoin BTCUSD in January was a huge success, attracting approximately $8 billion in assets. At the end of June, these nine new products totaled nearly $38 billion in assets. However, some ETF and cryptocurrency analysts believe that the launch of the new ether spot ETFs will be less impressive due to ether’s smaller market cap and trading volumes.

The latest speculation comes a week after Bloomberg ETF analyst Eric Balchunas brought forward the ETF launch date to July 2. Balchunas had said there was a “decent chance” the SEC would declare them effective and take them off their plate before the holiday weekend.

In a recent interview, SEC Chairman Gary Gensler highlighted the smooth progress of ETF filings. He said the final decision rests with asset managers to provide complete information for registration statements to come into effect.

Although the enthusiasm was palpable, some analysts predicted that the launch could potentially result in a 30% drop in the price of Ether.

Price action:At the time of writing, Ether was trading at $3,377.13, following a 1.06% decline over the past 24 hours, according to data from Benzinga Pro.

Photo courtesy: Shutterstock.com

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Disclaimer: This content was partially produced with the assistance of Benzinga Neuro and was reviewed and published by Benzinga editors.

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