Reports in show that Spot Ethereum Exchange Traded Funds (ETFs) could start trading next week. According to Bloomberg analyst Eric Balchunas, Ethereum ETFs could launch in the United States by July 23.
Spot ETH ETFs finally coming to traders
Ethereum is up nearly 6% to trade at $3,403 today, following the news that the United States Securities and Exchange Commission (SEC) would potentially greenlight Ether ETFs.
Update: Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
According to a Reuters report, the SEC has given “preliminary approval” to at least 3 asset managers for their spot Ether ETFs. Their sources state that the ETFs could “launch simultaneously.” They add that their approval banks on applicants submitting final offering documents to the SEC before the end of the week.
Ever since the SEC approved spot Bitcoin ETFs, several financial institutions have been trying to secure approval for ETH ETFs. Industry giants such as BlackRock, Franklin Templeton, ARK 21Shares, and Fidelity have been working with the SEC to launch the ETFs.
According to data gathered by Kaiko, Ether could outperform Bitcoin following the launch of ETFs. Kaiko notes, “The ETH to BTC, which measures the relative performance of the two assets, remains elevated around 0.05. This is significantly higher than pre-approval levels of near 0.045. A stronger ratio suggests ETH could continue to outperform relative to BTC following ETF launches.”
The report adds that despite the usual summer decline in trade volumes, ETH liquidity conditions have remained stable. ETH’s 1% market depth has maintained around $230 million since approval. Spot BTC ETFs’ approval in January has boosted BTC’s liquidity.
