Ethereum ETFs to Begin Trading on July 23, Bloomberg Analyst Says

In a significant development, spot Ethereum exchange-traded fund (ETF) is set to begin trading on July 23, according to Bloomberg ETF analyst Eric Balchunas. He shared that issuers have been asked to submit their final S-1 documents by Wednesday.

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

The latest development represents a significant milestone for the crypto industry. These investment vehicles allow investors to gain exposure to Ethereum without directly holding the cryptocurrency. Unlike futures-based ETFs, which derive their value from contracts, spot ETFs track the current price of Ether on exchanges, providing a more direct link to the underlying asset. 

Ethereum ETFs to Start Trading Next Week

According to the analyst, the Securities and Exchanges Commission (SEC) told prospective issuers of spot Ethereum ETFS on Monday that the funds could begin trading next Tuesday. 

He also noted the regulator told one issuer that it had no further comments on the recently submitted S-1s and that the final versions needed to be submitted by Wednesday.

The Ethereum ETF issuers submitted their amended S-1 documents last week however, most of them are yet to disclose some details, including how much management fee they will be charging investors. Only a few issuers, including VanEck and Invesco Galaxy, have so far revealed their fees.

Furthermore, another ETF analyst James Seyffart, highlighted that this could mean that the Ethereum ETFs will start trading the same week as the Bitcoin Conference, set to happen in Nashville.

In May, the SEC officially approved eight 19b-4 filings for spot Ether ETFs on various U.S. exchanges, including Grayscale, Bitwise, VanEck, Ark Invest, Invesco Galaxy, Fidelity and Franklin Templeton. 

Ethereum’s Price Potential

The latest development is a key step for crypto adoption by mainstream investors, as it solidifies Ethereum as a sound asset among institutional investors. Joe Lubin, Consensys co-founder and CEO said that the purchasing pressure for the product would drive immense scarcity for the crypto asset.

Additionally, Bitwise’s Chief Investment Officer predicts that these investment instruments will attract 15 billion in inflows by the end of 2025. Meanwhile, Ethereum trades at $3,371 at press time, representing a modest 0.65% gain in the last 24 hours.