Spot Ether ETF Approved Soon, Could Start Listing Next Week

Issuers of spot ethereum exchange-traded funds (ETFs) are expected to receive final comments from regulators early next week, possibly as early as July 12, according to industry sources. This would pave the way for the listing of Ether ETFs to begin next week.

Several issuers, including Van Eck and 21Shares, filed revised registration applications this week in hopes of receiving final approval from the Securities and Exchange Commission (SEC) to begin listing spot ETH ETFs as soon as possible, sources noted.A total of about eight issuers are currently awaiting regulatory approval.

Analysts expect that Ether ETFs could attract billions of dollars in inflows in the months following their listing, which could significantly push up the spot price of Ether. Crypto analyst Mark Dunleavy noted that the reduced availability of Ether on exchanges means thinner order books and fewer purchases, so the spot price of Ether could be more sensitive to the demand for ETF purchases than Bitcoin.

Additionally, some crypto-native hedge funds that have held billions of dollars of spot ETH for years are now reaching out to institutional market makers such as Virtu Financial to swap those positions for ETF shares, a significant source of market demand, according to sources.

Once listed, the spot ethereum ETF will complement existing publicly traded crypto funds, including about a dozen spot bitcoin ETFs that have been trading since receiving regulatory approval in January of this year.