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Key Insights:
- Nate Geraci predicts spot Ethereum ETF trading by mid-July, anticipating SEC approval within two weeks.
- Potential issuers like BlackRock and Fidelity expect SEC feedback and revised S-1 filings by July 8.
- YieldMax and Hashdex file for new crypto ETFs amid growing optimism in the market.
Nate Geraci, President of the ETF Store and an expert in the ETF sector, has forecasted that the spot Ethereum ETF product will commence trading within the next two weeks. This prediction comes amid rising anticipation and preparation from various stakeholders in the industry.
Expected Approval Timeline
Geraci anticipates that the United States Securities and Exchange Commission (SEC) will complete the necessary approval processes for the spot Ethereum ETF this week. In a social media post, he stated his expectation that the ETF’s trading would begin around July 15. This timeline aligns with Geraci’s previous estimates, further reinforcing his confidence in the product’s imminent launch.
In late May, several potential issuers of the spot Ethereum ETF, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, submitted their S-1 filings to the SEC. Two weeks ago, the regulatory body returned these filings with feedback, suggesting light amendments. The issuers are expected to resubmit the revised S-1 forms by July 8, which could pave the way for final approval by around July 12, potentially leading to a trading start date of July 15.
Industry Optimism and Market Movements
The dialogue between the SEC and spot Ethereum ETF filers appears to be constructive, which is a positive sign for the industry. Geraci’s prediction is based on this optimistic outlook, despite the price of Ethereum having declined by over 20% since the unexpected approval of 19b-4 filings in late May. The ETF community is keenly watching the SEC’s moves, anticipating that the approval of the spot Ethereum ETF could have substantial effects on the market.
Furthermore, the optimism surrounding the SEC’s decision has encouraged additional filings. For instance, YieldMax, a well-known ETF issuer, has submitted an application for an Ether Option Income Strategy ETF, which aims to leverage the volatility of underlying spot Ethereum ETFs to generate profits for investors. This filing, detailed in a June 21, 2024 submission, proposes listing the ETF on the New York Stock Exchange (NYSE) Arca.
Additional Crypto ETF Filings
Investment asset management firm Hashdex has also filed to list a combined Bitcoin and Ethereum ETF. The SEC has acknowledged this offering and published a notice soliciting public comments on the proposed rule change. However, it is likely that the regulator will focus on the spot Ethereum ETF before making a decision on this combined product.
The ongoing developments reflect a broader trend of growing interest and involvement in the cryptocurrency ETF space. Firms like Quantum Income and Tokenhell are increasingly looking to capitalize on the evolving market landscape.
Nathaniel is a cryptocurrency blogger and investor. He has been blogging about cryptocurrencies since 2017 and considers himself an expert in the space. Nathaniel also invests in cryptocurrencies and believes that they will become more widely accepted as time goes on.
