The US Securities and Exchange Commission (SEC) is poised to grant preliminary approval for several exchange-traded funds (ETFs) tied to the spot price of ether, the second-largest cryptocurrency by market value. Industry sources, cited by a Reuters report indicate that at least three of the eight asset managers applying for these ETFs may begin trading as early as next Tuesday, July 23.
This development follows the successful launch of spot bitcoin ETFs in January, which attracted over $33 billion in net inflows by the end of June. The approval of ether ETFs represents another significant milestone for the cryptocurrency industry’s efforts to integrate digital assets into mainstream finance.
Major financial institutions, including BlackRock, VanEck, and Franklin Templeton, are among the applicants expected to receive SEC approval. The launch is contingent upon the submission of final offering documents to regulators before the end of this week.
While the ether ETF approval is seen as a positive step for the crypto market, experts caution against expecting the same level of success as bitcoin ETFs. Martin Leinweber, a digital asset strategist, suggests that ether ETFs may see more modest inflows and higher price volatility due to its smaller market size compared to bitcoin.
Citi analysts project that ether ETF inflows could reach between $4.7 billion and $5.4 billion over six months, approximately 30-35% of spot bitcoin ETF levels. Factors like market perception, lack of staking options, and bitcoin’s first-mover advantage may influence investor behavior.
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