ETFs
Ethereum ETFs in ‘showcase’ phase with potential approval in weeks
The race for spot Ethereum ETFs (Exchange Traded Funds) in the US is gradually coming to an end. Steve Kurz, head of asset management at Galaxy Digital, seems optimistic about the approval of spot Ethereum ETFs this month.
Kurt said the approval process has entered a “staging” phase, with only the final touches remaining. He expects the U.S. Securities and Exchange Commission (SEC) to give the green light within a few weeks.
Galaxy Announces Ethereum ETF Approval Process Entering Final Phase
Kurz, head of asset management at Galaxy Digital, believes that ETH Spot ETF approval would not go beyond next July.
In an interview with Bloomberg TV on July 2, Kurz mentioned The ETH ETF approval process has reached the final stage. He also noted that the SEC is fully engaged in the process with fund issuers.
Kurz said: “Look, we’ve done this before. It’s a method, it’s smoke and mirrors, and the SEC is involved.”
The Galaxy official attempted to correlate the approval process between Bitcoin spot ETFs and Ethereum ETFs. According to Kurz, the products share similarities and maintain the same approval phases.
He also pointed out that asset issuers followed the same processes when looking for BTC ETFs, so they understood the details of each step.
Galaxy Digital is among eight asset managers that have applied for the Ethereum spot ETF through its collaboration with Invesco. Others include BlackRock, Fidelity, ARK Invest, VanEck, iShares, Grayscale and Franklin Templeton.
Besides Kurz, other prominent ETF analysts have predicted a similar development for the approval of spot ETH ETFs.
On June 28, Bloomberg senior ETF analyst Eric Balchunas withdrew his previous estimate for SEC ETF approvals. The change comes as the SEC has adjusted its timeline for responding to asset managers regarding their S-1 filings.
Unfortunately, we’re going to have to push our over/under back until after the holidays. It seems like the SEC took longer to respond to people this week (although there were still very minor changes) and from what I hear, next week is dead because the holidays = July 8th, the process starts again and shortly after that they’ll launch… https://t.co/0ZQR7yiBLt
— Eric Balchunas (@EricBalchunas) June 28, 2024
SEC Requires Minor Updates From ETF Issuers
The SEC approved the applicants’ 19b-4 filings, supporting the listing of the products on three U.S. exchanges: CBOE, NYSE and Nasdaq.
The agency has not yet approved the S-1 forms that will authorize the launch of the ETFs, which contain information about the new securities intended for investors in these products.
Some details include the nature of the fund structure, investment strategy, management and methods of tracking the performance of the underlying asset.
A July 2 Bloomberg report, citing sources familiar with the matter, said the SEC called for an amendment to the S-1 forms and required fund issuers to submit their updated forms by July 8.
The unnamed sources said the regulator expected asset managers to fix some minor issues in the forms. It also noted that the agency could still ask for an additional round of filings later before approving it.
Amid the buzz surrounding the upcoming launch of Ethereum ETFs, many participants have wondered whether they could match the growth of BTC ETFs, which have accumulated over $52 billion in assets.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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