- The spot Ethereum ETF could start trading next Tuesday.
- The SEC is in the process of collecting final drafts from potential spot Ethereum ETF issuers.
Ethereum (ETH) has lost momentum after breaking above $3,400 earlier today, hitting an intraday high of $3,498 on CoinMarketCap. The leading altcoin was trading at $3,445 at the time of writing, up 3.64% over the past 24 hours.
Source: ETH/USDT chart, TradingView
ETH has recovered from its drop below $3,000 last week, rising 12.8% over the past seven days at the time of writing, but remains down 13.2% from its March 11 high.
The recent rally follows reports that a spot Ethereum exchange-traded fund (ETF) could be approved in the United States next week.
Spot Ethereum ETF Update
ETF market commentator Nate Jerassi predicted earlier this week that the U.S. Securities and Exchange Commission (SEC) would soon approve the resubmitted registration statement.
Geraci wrote in a Sunday post on X (formerly Twitter):
“Welcome to Spot (ETH) ETF approval week. I’ll call it that. I don’t know the specifics, but at this point, I can’t think of any good reason to delay any longer. The issuers are ready to launch.”
Bloomberg ETF analyst Eric Balchunas agreed with Geraci in a separate post, adding that only an unforeseen last-minute setback could delay the launch. “I would say that
“Nate’s instincts were right. Today we finally heard from the SEC that they are contacting the issuer and asking them to return the final S-1 (with fees) on Wednesday and have it effective Monday after the close on Tuesday 7/23.”
Separately, a July 15 Reuters report cited three sources indicating that the SEC is likely to allow at least three issuers—BlackRock, VanEck, and Franklin Templeton—to begin trading “next Monday.”
According to sources, this final approval schedule will depend on whether the issuer submits final documents before the weekend.
Market expectations
While a specific approval date is currently unclear, market anticipation has been building for several weeks since the SEC approved the applicants’ Form 19b-4 in May.
In June, the U.S. Securities and Exchange Commission (SEC) provided feedback on the submitted Form S-1, highlighting areas that needed review.
Last week, securities regulators required eight asset managers seeking approval for spot Ethereum ETFs to file amended S-1 registration statements.
The approval of a spot Ethereum ETF is expected to have significant implications for the Ethereum market and the broader cryptocurrency industry.
ETF products linked to the spot price of Ether provide investors with a new opportunity to gain exposure to the altcoin through a regulated financial instrument.
Most market analysts predict that an Ethereum ETF could attract investment flows from institutional investors, likely similar to the inflows observed for spot Bitcoin ETFs in the first half of this year.
According to Farside’s Bitcoin ETF Flow Chart, US spot Bitcoin ETFs have attracted $16.12 billion in inflows since their launch earlier this year.
Source: Yahoo Finance
Read Ethereum (ETH) Price Prediction 2024-2025
What’s notable is that the anticipated launch date coincides with the week of the Bitcoin Conference in Nashville in 2024.
The conference, which runs from July 25-27, will feature notable speakers including MicroStrategy Chairman Michael Saylor, ARK Founder Cathy Wood, Independent U.S. Presidential candidate Robert Kennedy Jr., and Republican U.S. Presidential candidate Donald Trump.