Prospective issuers of a spot ether (ETH) exchange-traded fund (ETF) received confirmation from the Securities and Exchange Commission (SEC) that the funds can commence trading next Tuesday. This news has created significant buzz in the cryptocurrency market.
According to sources familiar with the matter, SEC officials informed one issuer that no further comments were required on the recently submitted S-1s. The final versions of the documents needed to be resubmitted by Wednesday to proceed with the listing process. Subsequently, the ETFs are expected to be listed on exchanges on Tuesday, July 23.
A second source hinted that trading could potentially start on Tuesday, following the ETFs’ effectiveness confirmation on Monday.
Bloomberg Intelligence senior ETF analyst, Eric Balchunas, was among the first to report this development through a social media post.
While the amended S-1 documents were submitted last week, some crucial details, such as the management fees to be charged to investors, are yet to be disclosed by the issuers. Only a few, including VanEck and Invesco Galaxy, have revealed their fee structures.
Upon entering the market, the spot ether ETFs are anticipated to attract substantial capital. Crypto exchange Gemini predicts potential inflows of up to $5 billion within the first six months. Meanwhile, Steno Research projects even higher inflows, estimating up to $20 billion in the first year.
The news of ETFs being approved for trading next week has already impacted the cryptocurrency market. The price of ether surged by 7.3% on Monday, surpassing Bitcoin’s gains of 6%. The CoinDesk 20 index also saw a notable increase of 5.6% today.
Nik De also contributed to the reporting of this story.