Ethereum ETFs Near ‘Finish Line’ as SEC Discusses Other ETFs
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Bitwise’s chief compliance officer, Katherine Dowling, suggested in a July 8 Bloomberg interview that diminishing issues within S-1 filings could indicate the imminent launch of Ethereum ETFs.
This comes amidst reports of ongoing discussions between the SEC and various firms regarding other spot ETFs.
Dowling cited this as a positive sign that the highly anticipated eight U.S.-based spot Ether exchange-traded funds (ETFs) are nearing launch.
“We’re seeing in the S-1 amendments that there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC,” she said.
Bitwise Chief Compliance Officer Katherine Dowling discusses her firm's Ether ETF application and the potential for new products tied to crypto https://t.co/hKIvliRCnX pic.twitter.com/PvMFeG4wWU
— Bloomberg Crypto (@crypto) July 9, 2024
These Form S-1s provide crucial details about the issuer and the proposed securities, with product launches contingent upon SEC approval.
Several spot Ethereum ETF issuers have been waiting for six weeks to have their S-1 registration statements signed off by the SEC after the regulator approved several 19b-4 filings on May 23.
Dowling referenced US Securities and Exchange Commission Chair Gary Gensler’s recent prediction that the spot Ether ETFs will launch sometime in the summer.
She did, however, acknowledge the ambiguity surrounding the timeline, stating, “Everyone has a different definition of summer. It’s been a little bit of a long, hot summer for the issuers waiting.”
Ethereum ETFs Could See An Ethereum Rally
Bitwise’s chief investment officer Matt Hougan speculated that the spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading. This amounts to roughly the same amount that spot Bitcoin ETFs have accumulated within the 6 months since their launch.This underperformance compared to the Bitcoin ETFs is to be expected. During the interview, Dowling proclaimed optimism for retail and institutional investor interest. She highlighted it to be a “more nuanced sell, not a harder sell” as Ethereum is not as easily explained as the “digital gold qualities” of Bitcoin.
Market maker Singapore-based QCP Capital forecasts a substantial 60% Ethereum rally upon launch, potentially catapulting the cryptocurrency to new all-time highs.
This draws parallels to the market reaction following the approval of spot Bitcoin ETFs earlier this year.
Additionally, Dowling revealed that the SEC has demonstrated openness to engage in discussions regarding products beyond Bitcoin and Ether.
“We’ve actually dialogued with the SEC about the possibility of what’s coming down the pipe with new products,” she said.
Solana ETF Decision Set For Mid-March 2025
Solana ETFs are set to receive a decision from the SEC around mid-March 2025.
This comes after the Chicago Board Options Exchange (CBOE) filed two Form 19b-4 applications on July 8 to list VanEck and 21Shares’ proposed ETFs.
The SEC, according to its own regulations, has a 240-day period to reach a decision regarding the Solana ETFs.
This would allow the rule change necessary for CBOE to list the products from VanEck and 21Shares.
🔗 Could the 2024 US election determine the fate of the Solana ETF? Bloomberg analyst Eric Balchunas weighs in on the potential outcomes for this crucial decision… Here’s the latest.#SolanaETF #Cryptocurrencyhttps://t.co/6pE809sT6Z
— Cryptonews.com (@cryptonews) July 9, 2024
However, the upcoming US election is shaping up to be the most significant factor for a Solana ETF approval.
The election will occur in November, preceding the Solana ETF decision deadline of mid-March 2025.
Some analysts speculate that a Biden victory could present challenges for the Solana ETFs, while a Trump presidency might foster a more accommodating regulatory landscape, potentially bolstering their chances of approval.
Solana ETFs are set to receive a decision from the SEC around mid-March 2025.
This comes after the Chicago Board Options Exchange (CBOE) filed two Form 19b-4 applications on July 8 to list VanEck and 21Shares’ proposed ETFs.
According to the SEC’s own rules, the agency will have 240 days to decide on Solana ETFs.
This would allow the rule change necessary for CBOE to list the products from VanEck and 21Shares.
However, the upcoming US election is shaping up to be the most significant factor for a Solana ETF approval. The election will occur in November, preceding the Solana ETF decision deadline of mid-March 2025.
A Biden victory is purported to spell doom for the Solana ETFs. However, a Trump presidency might offer a more favorable regulatory environment, potentially increasing the chances of approval.
