ASSET managers are optimistic that the US Securities and Exchange Commission (SEC) will greenlight the first US exchange-traded funds (ETFs) that invest directly in Ether as soon as mid-July, saying the back and forth with the regulator remains constructive.
Despite earlier market speculation that approval would land during the Jul 4 holiday week, the SEC has told Ether ETF applicants that they have until Jul 8 to submit updated paperwork, according to two sources familiar with the matter. There may be an additional round of filings after the round due on Friday (Jul 5).
The US regulator’s recent feedback to issuers last Friday consisted of minor questions that issuers are now addressing, said the sources. In May, the SEC signed off on a proposal by exchanges to list the products. A separate approval is needed before they can be launched.
Steve Kurz, head of asset management at Galaxy Digital, predicted that an Ether ETF will be approved within the span of the next couple of weeks. Galaxy has filed for an Ether ETF, he said.
“This is window-dressing, the SEC is engaged,” Kurz said on Tuesday. “We have been doing this for months now. We did it for the Bitcoin ETF, the products are substantially similar – we know the plumbing, we know the process.”
Firms including BlackRock, Fidelity Investments, 21Shares, and Invesco have filings waiting to be approved. Many issuers have not yet disclosed the fees on their respective funds, which is a necessary step before the funds start trading.
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Assuming the funds get a green light, one key question is whether the Ether portfolios will generate anything such as the demand stirred by the historic January debut of US spot-Bitcoin ETFs. The latter have amassed US$52 billion in assets.
Ether dropped about 1.5 per cent to US$3,411 as at 1.00 pm in New York. The second-largest cryptocurrency after Bitcoin has risen around 50 per cent so far this year. BLOOMBERG
