According to sources familiar with the matter, the Securities and Exchanges Commission (SEC) has informed prospective issuers of a spot ether (ETH) exchange-traded fund (ETF) that the funds can begin trading on July 23rd. This news comes as a significant development in the crypto space, with ETH outperforming BTC on Monday due to the potential ETF trading approval.
Background on SEC Approval Process
The issuers had submitted amended S-1 documents last week but have yet to disclose some of the details, including how much management fee they will be charging investors. Only a few issuers, such as VanEck and Invesco Galaxy, have so far revealed their fees.
Details on SEC Communication with Issuers
SEC officials informed one issuer that the regulator had no further comments on the recently submitted S-1s and that the final versions needed to be submitted by Wednesday. The source added that the funds can subsequently be listed on exchanges on July 23rd, following their effectiveness next Monday.
A second source confirmed that trading could start on Tuesday, after the ETFs are deemed effective next Monday. This development was first reported by Bloomberg Intelligence senior ETF analyst Eric Balchunas in a social media post:
Update from Eric Balchunas
"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!"
Link to Eric Balchunas’ Original Post
https://t.co/D21FD9Qf94
Impact on Crypto Market
The price of ether rose as much as 7.3% on Monday, outpacing bitcoin’s 6% gain, on the news of ETFs starting to trade next week. The broader market index CoinDesk 20 climbed 5.6% today.
Predictions for Inflows
Once live on the market, the spot ether ETFs could see inflows of up to $5 billion in the first six months, according to crypto exchange Gemini’s predictions. Steno Research said it expects inflows of up to $20 billion in the first year.
Conclusion
The SEC’s approval for ETH exchange-traded funds issuers is a significant development in the crypto space. As these funds begin trading on July 23rd, investors can expect to see increased adoption and investment in the spot ether market. With predictions of inflows ranging from $5 billion to $20 billion in the first year, this news has sent shockwaves through the market, with ETH outperforming BTC on Monday.
Additional Resources
For more information on the Ethereum spot ETFs and their potential impact on the crypto market, readers can refer to the following article:
- Ether Spot ETFs to See Up to $5B of Net Inflows in First Six Months: Gemini
This development is a significant step towards mainstream adoption of cryptocurrencies, and it will be interesting to see how the market reacts to this news. With the potential for increased investment and trading activity, the crypto space is likely to experience significant growth in the coming months.
Key Takeaways
- The SEC has informed prospective issuers of a spot ether (ETH) exchange-traded fund (ETF) that the funds can begin trading on July 23rd.
- ETH outperformed BTC on Monday due to the potential ETF trading approval.
- Issuers have yet to disclose some details, including how much management fee they will be charging investors.
- The price of ether rose as much as 7.3% on Monday, outpacing bitcoin’s 6% gain.
- Predictions for inflows range from $5 billion to $20 billion in the first year.
This development is a significant step towards mainstream adoption of cryptocurrencies, and it will be interesting to see how the market reacts to this news. With the potential for increased investment and trading activity, the crypto space is likely to experience significant growth in the coming months.