Bitwise’s chief compliance officer, Katherine Dowling, has provided a significant update on the approval process of Ethereum exchange-traded funds (ETFs). She revealed that the discussions between the SEC and prospective ETF issuers are progressing well, with ‘fewer and fewer’ issues being raised. This update indicates that the launch of Ethereum ETFs is on the horizon, keeping our audience well-informed and updated.
Approaching Approval
Eight U.S.-based spot Ether ETFs are on the verge of going live, although an exact launch date remains uncertain. Dowling mentioned in an interview with Bloomberg on July 9 that the S-1 amendments show a decreasing number of issues being negotiated, pointing towards an impending launch. Form S-1s provide information about the issuer and the securities they intend to offer, and once approved, the products can launch.
SEC Chair Gary Gensler has predicted that spot Ether ETFs will launch sometime in the summer. However, Dowling noted that the definition of summer varies, and issuers’ wait has been prolonged.
Several issuers have been waiting for over six weeks for their S-1 registration statements to be approved by the SEC following the approval of several 19b-4 filings on May 23. These issuers submitted amended S-1s in early July after receiving initial feedback from the SEC.
Potential Market Impact
Bitwise’s chief investment officer, Matt Hougan, has made an exciting prediction about the potential market impact of spot Ether ETFs. He speculates that these ETFs could attract up to $15 billion in inflows within the first 18 months of trading. This significant influx of capital could drive up the price of Ether, presenting an attractive investment opportunity for cryptocurrency enthusiasts. This optimistic prediction is reminiscent of the performance of spot Bitcoin ETFs launched six months ago, which saw a similar surge in investor interest and inflows.
SEC’s New Stance: Open to Diversifying Crypto Products
Dowling’s revelation about the SEC’s willingness to discuss products beyond Bitcoin and Ether is a significant development. It suggests a potential shift in the SEC’s regulatory stance towards cryptocurrencies, which could pave the way for a more diverse range of crypto-related products to be approved for trading. The fact that Bitwise has engaged in dialogue with the SEC regarding future products further reinforces this encouraging stance from the regulator, giving our audience hope for the future of cryptocurrency trading.
Spot Solana ETFs: A Potential Hurdle in the Approval Process
Senior Bloomberg ETF analyst Eric Balchunas echoed this sentiment, noting that a spot Solana ETF application might be “dead on arrival” if President Biden is re-elected and Gensler continues to lead the SEC.
