ETFs
Ethereum ETF Approval Delayed Until July 8
Until last week, analysts expected Ethereum spot ETFs to be approved by July 2.
The highly anticipated launch of Ethereum spot ETFs has been delayed.
Analysts had expected approval by July 2, but the U.S. Securities and Exchange Commission (SEC) has asked issuers to submit revised documents by July 8.
“Unfortunate[unately]we’re going to have to push back our over/under date until after the holidays. The SEC took longer to respond to people this week, even though the changes were very slight,” tweeted Eric Balchunas, senior ETF analyst at Bloomberg.
“From what I heard, next time,[ee]k is dead because it is a holiday = on July 8th the process starts again and shortly after they will be launched.
In June, SEC Chairman Gary Gensler said Ethereum ETFs will likely be approved by “late summer.” The SEC must review and approve S-1 forms, the second step in launching spot Ethereum ETFs. This process follows the approval 19b-4 forms, which the SEC granted in May.
To attract institutional investment, several ETF issuers have announced fee waivers for their Ethereum spot funds.
Franklin Templeton announced a 0.19% referral fee, but will waive it for the first $10 billion in assets for six months. Similarly, VanEck announced a 0.20% referral fee, which will be waived for the initial $1.5 billion until an unspecified date in 2025.
It should be noted that BlackRock and Fidelity have not yet disclosed their fees.
Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund, believes institutions “may find Ethereum attractive for its potential in sectors like finance, supply chain and technology.”
At the same time, Zheng predicts the ETF launch will trigger a modest rally, although he also anticipates a prevailing “sell the news” sentiment.