- Ethereum ETFs are set to launch Tuesday, following SEC discussions with VanEck and Invesco Galaxy.
- Predictions show up to $20 billion in inflows in the first year for spot ether ETFs.
- The launch coincides with a major Bitcoin conference, signaling a significant market impact.
The first Ethereum ETFs are to launch on Tuesday – it is officially recognized by the Securities Exchange Commission. This decision comes in the wake of talks the SEC having with VanEck and Invesco Galaxy some of the dominant issuers in the markets.
Final Steps for ETF Issuers
SEC officials informed one issuer that the regulator had no further comments on the submitted S-1 forms. The final versions need to be submitted by Wednesday. Consequently, these funds can be listed on exchanges by Tuesday, July 23. Another source noted that the ETFs could commence trading after being deemed effective on Monday.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, initially shared on social media. Just last Monday, the issuers revised their S-1 forms, but they haven’t yet revealed important information like management fees. Currently, only VanEck and Invesco Galaxy have disclosed their fee schedules.
Expected Inflows and Market Impact
Significantly, the launch of these spot ether ETFs could attract up to $5 billion in inflows within the first six months, predicts crypto exchange Gemini. Steno Research forecasts inflows reaching $20 billion within the first year. ETHER’s price surged 7.3% on Monday, surpassing Bitcoin’s 6% rise.
Applications must be authorized by the SEC by the end of the week in order to obtain final offering documentation, according to a Reuters story that quoted three industry sources.. VanEck, Franklin Templeton, and BlackRock are some of the applicants.
Additionally, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are set to launch their Ether products next week. One source indicated that all eight spot Ether ETFs would launch simultaneously, similar to the spot Bitcoin ETFs.
Anticipation and Future Prospects
The crypto community is eagerly anticipating this approval. Nate Geraci, President of ETF Store, predicted this week as the likely approval period for spot Ethereum ETFs. He tweeted: “Welcome to spot eth ETF approval week… I’m calling it. I don’t know anything specific; just can’t come up with a good reason for any further delay at this point. Issuers ready for launch.”
This approval aligns with the biggest Bitcoin conference of the year. The launch of spot ETH ETFs marks a significant milestone, offering investors a new way to invest in Ethereum through regulated products.
Substantial investment flows are anticipated following the launch. Additionally, more cryptocurrency-based financial products, including those based on Solana and other digital assets, are expected to be introduced.
Balchunas suggested this marks the beginning of crypto ETFs, with other tokens likely to follow. He commented: “Keep in mind that after launch, there are flows and then additional eth products, I’m sure, then Solana, and then… it’s probably never going to end. The dam has broken.”
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