On Tuesday, July 23, the Securities and Exchange Commission will allow for the launch of US spot ether exchange-traded funds.
Late Monday night, the SEC approved the ETFs and allowed them to be launched on Tuesday.
In recent weeks, the SEC and issuers have been working together to finalize disclosure documents. The SEC approved in May 19b-4 requests filed by the exchanges where the funds will be listed.
Several industry watchers expected that SEC will reject the proposals for spot ether leading up to May’s ruling. The conversation changed in the days before, as some speculated that it was a result of political motivation.
Modified filings made around this time confirmed that funds will not stake their ETH.
While the 19b-4 approvals were a landmark ruling, issuers had to iron out disclosure details with a separate unit of the regulator — the SEC’s Division of Corporation Finance — before the funds could be cleared to trade.
On July 17, the fund groups submitted their latest registration statement which also included the planned fees of the ETH ETFs. Some people close to the project had said that they thought issuers would be able launch their proposed funds by July 23.
Although spot ether funds are available in other parts of the world, their debut is a significant milestone for the US. These funds will launch in a little over six months, after the US’s first spot bitcoin ETFs were launched.
BTC fund net flows since that time have totaled about $17 Billion. The industry expects ETH fund demand to be lower, with estimates ranging between 15% and 30% of BTC flow.
Leah Wald, CEO of Cypherpunk Holdings told Blockworks recently that summer can be a difficult time for an ETF to launch.
“I think [reception] can’t be just determined in the first few months of trading,” “She said she was referring to the ETH Funds.” “I think it needs to be determined after a year.”
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