Ether ETF Release Primed for July 23: Here’s What We Know

• Sources have disclosed the launch date for spot ether ETFs.
• The revealed timeline aligns with expert calls in recent weeks.
• The reports have sparked excitement as billions of dollars are expected to flow into these products.

Driven by the desire to take crypto mainstream, industry participants have long clamored for ETFs backed by crypto assets, touting the ability of these familiar investment vehicles to onboard traditional investors to the space and serve as a pathway for billions, if not trillions of dollars to flow into the nascent market.

In 2024, this goal that had started as a seemingly far-flung dream in the U.S. has become a reality following the decision of the SEC to approve spot Bitcoin ETFs in January and, in May, approve a rule change setting the groundwork for spot ether ETFs.

The staggered approach to fully greenlighting spot ether ETFs, however, has left market observers anxiously guessing when these products would go live. After weeks of speculation, the SEC is now reportedly ready to let these products launch as soon as next week.

Spot Ether ETF Launch Date Revealed

After weeks of back and forths over registration statements, also known as S-1 filings, the SEC appears set to let spot ether ETFs launch on Tuesday, July 23. Bloomberg Senior ETF Analyst Eric Balchunas disclosed this in an X post on Monday, July 15, citing anonymous sources.

According to Balchunas, after a week of silence, the market regulator finally contacted issuers, urging them to send in their “final S-1s” on Wednesday, July 17, which should include their desired management fees. So far, only about three out of eight prospective issuers, including Franklin Templeton, VanEck , and Invesco, have revealed their fees. 

Supposing everything runs smoothly, Balchunas noted that the SEC is slated to greenlight these S-1 filings on July 22, setting the stage for a launch on Tuesday, July 23.

Balchunas’ report aligns with his calls , which other analysts, like The ETF Store President Nate Geraci, have shared over the past week, that all the required documents and issuers were ready and further delays were unnecessary.

In response to a DailyCoin request for comment, an SEC spokesperson asserted that the agency did not comment on individual filings and added that effective registration statements are reflected on the agency’s website.

Still, the report has sparked significant excitement within the community as many anticipate that the ETFs would be bullish for ether’s price.

Can Spot Ether ETFs Meet Expectations?

Amid the excitement surrounding the launch of spot ether ETFs, analysts have cautioned that they are unlikely to match the inflows seen by their Bitcoin counterparts. The basis of this analysis lies in the disparity between the market cap of both assets. 

According to CoinMarketCap data at the time of writing, Bitcoin boasts a market cap of $1.25 trillion, far greater than ether’s $410 billion. Analysts believe this market cap disparity will also be reflected in ETF inflows. Senior Bloomberg ETF Analyst James Seyffart is among those who have expressed this view.

In May 2024, Seyffart disclosed that he expected ether ETF inflows to not exceed 20-25% of the inflows to Bitcoin ETFs. In June 2024, Bitwise Chief Investment Officer Matt Hougan shared a similar analysis, revealing that he expected ether ETFs to rake in $15 billion in the first few months of trading. For context, spot Bitcoin ETFs hit $10 billion in inflows within the first month. 

Still, analysts have maintained that the expected spot ether ETF inflow numbers are still big by normal ETF standards.

While it is generally believed that the additional demand from ETFs will likely drive ether’s price higher, the price effects may take a few weeks to become apparent, as evidenced by Bitcoin’s run-up to previous all-time highs about two months after spot Bitcoin ETFs launched.

On the Flipside 

• There has been no official statement from the SEC yet.
• Unlike the rule change approved in May 2024, the SEC has no deadline to approve S-1 filings.

Why This Matters

Spot ETFs have been tipped to turbocharge ether demand, drive prices higher, and bring greater legitimacy to the crypto market. Balchunas’ report suggests that the long wait for these products to launch is finally nearing its end.

Read this for more on the ether ETF watch:
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