The anticipated approval of Ethereum spot ETFs has encountered another delay. Initially slated for completion by July 2nd, the US Securities and Exchange Commission (SEC) has extended the deadline for issuers to submit revised documentation until July 8th.
Eric Balchunas, Senior ETF Analyst at Bloomberg, expressed his disappointment on social media, stating, “Regrettably, we will need to push back our over/under date until post-holidays. The SEC took extra time to respond this week, despite the minor adjustments.” He also hinted that “Based on what I’ve gathered, next week will be unproductive due to the holiday until July 8th, when the process will resume and shortly thereafter, approvals are anticipated.”
Last month, SEC Chairman Gary Gensler hinted that approval for Ethereum ETFs could come by “late summer,” emphasizing the review and approval of S-1 forms crucial for ETF launches on Ethereum spot. This process builds upon the authorization of Forms 19b-4 sanctioned by the SEC in May.
In a bid to attract institutional investment, numerous ETF issuers have introduced aggressive fee-waiver schemes. Franklin Templeton disclosed a waiver of the 0.19% sponsorship fee on the initial $10 billion in assets for six months. Similarly, VanEck has exempted the 0.20% sponsorship fee for the initial US$1.5 billion until an unspecified date in 2025. Notably, industry stalwarts like BlackRock and Fidelity are yet to disclose their fee structures.
Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund, highlighted Ethereum’s appeal to institutions in finance, supply chain, and technology sectors. Zheng envisions a modest market rebound post ETF launches but expects a “sell the news” sentiment to prevail among investors.
Disclaimer: The opinions expressed by the author or individuals referenced in this article are for informational purposes solely and do not constitute financial or investment advice. Investing or trading in cryptocurrencies carries inherent financial risks.
Editor’s Pick: A report forecasts net inflows of $15 billion enticed by Ethereum ETFs in the initial 18 months. Epic inflows are anticipated for Ethereum ETFs in the opening five months as well.