Spot Ether ETFs Expected Soon, Bitwise Exec Highlights Progress
Spot Ether ETFs – A roster of eight United States-based spot Ether exchange-traded funds (ETFs) are edging closer to their launch dates, but the exact timeline remains uncertain, according to Bitwise’s Chief Compliance Officer Katherine Dowling.
Speaking to Bloomberg on July 9, Dowling highlighted the progress being made, noting: We’re seeing in the S-1 amendments that there are fewer and fewer issues being vetted back and forth between issuers and the SEC. So that points all signs in the direction that we are close. We’re close to the finish line on the launch.
Form S-1s, which provide detailed information about the issuer and the securities they intend to offer, are a critical step in the ETF approval process. Once these forms are approved, the ETFs can officially launch.
Gensler: Spot Ether ETFs Likely to Launch This Summer Despite Delays
Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), recently predicted that spot Ether ETFs would likely launch in the summer. Dowling acknowledged the prolonged wait for approval, saying: Everyone has a different definition of summer. It’s been a little bit of a long, hot summer for the issuers waiting.
Several spot Ether ETF issuers have been in limbo for six weeks, awaiting the SEC’s sign-off on their S-1 registration statements following the regulator’s approval of several 19b-4 filings on May 23. These issuers submitted their amended S-1s in early July after receiving initial feedback from the SEC.
Bitwise’s Chief Investment Officer Matt Hougan speculated that spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, comparable to the inflows seen by spot Bitcoin ETFs since their launch six months ago.
Additionally, Dowling revealed that the SEC has been open to discussions about products beyond Bitcoin and EtherBitcoin and Ether Prices React to Deribit’s Large Quarterly Expiry. “We’ve actually dialogued with the SEC about the possibility of what’s coming down the pipe with new products. I think our communication with the SEC about the prospects for these products has actually been quite welcoming,” she said.
Spot Solana ETFs Face Uncertainty as CBOE Files Applications for VanEck and 21Shares
On July 8, the Chicago Board Options Exchange (CBOE) filed applications to list spot Solana (SOL) ETFs on behalf of VanEck and 21Shares. However, Dowling expressed skepticism about the approval of a third spot cryptocurrency ETF under Gensler’s leadership. Senior Bloomberg ETF analyst Eric Balchunas echoed this sentiment on July 9, suggesting that a spot Solana ETF application would likely be “dead on arrival” if Biden were re-elected and Gensler remained at the helm of the SEC.
As the crypto market continues to evolve, the potential launch of spot Ether ETFs remains a significant development to watch, promising to bring substantial inflows and further legitimization to the sector.
FAQ on the Potential Launch of Spot Ether ETFs
What are spot Ether ETFs and why are they important?
Spot Ether ETFs are exchange-traded funds that directly invest in Ethereum (ETH), allowing investors to gain exposure to the cryptocurrency without having to hold it directly. They are important because they provide a regulated and accessible way for institutional and retail investors to invest in Ethereum, potentially increasing market liquidity and adoption.
What progress has been made toward the approval of spot Ether ETFs?
According to Katherine Dowling, Bitwise’s Chief Compliance Officer, significant progress has been made. The S-1 amendments, which are part of the regulatory process, have fewer issues being vetted back and forth between issuers and the SEC, indicating that approval may be near.
When are the spot Ether ETFs expected to launch?
SEC Chair Gary Gensler recently predicted that the spot Ether ETFs would likely launch in the summer. However, the exact timeline remains uncertain, and issuers have been awaiting approval for several weeks.
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