Spot Ether exchange-traded funds (ETFs) are poised for imminent regulatory approval, with industry insiders suggesting listings could commence as early as next week.
According to a knowledgeable source, who preferred anonymity due to the confidentiality of discussions, issuers anticipate receiving final feedback from the United States Securities and Exchange Commission (SEC) by early next week, possibly as soon as July 12.
Among the entities awaiting SEC approval are prominent names such as VanEck and 21Shares, which recently amended their registrations in anticipation of regulatory green lights.
In total, eight issuers are awaiting clearance to launch spot Ether ETFs.
Analysts foresee substantial market interest once these ETFs hit the exchanges, predicting potential inflows totaling billions of dollars in the months following their debut.
Crypto analyst Tom Dunleavy highlighted the unique dynamics of Ether’s market, noting that its spot price could see significant appreciation due to reduced availability on exchanges, leading to thinner order books and heightened responsiveness to ETF-driven buying pressures compared to Bitcoin.
A key driver of demand for these ETFs is expected to come from crypto-native hedge funds, which have held substantial amounts of spot ETH in self-custody for years.
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Reports indicate these funds are now engaging with institutional market makers, such as Virtu Financial, to exchange their ETH holdings for shares in the upcoming ETFs.
According to the source, over a dozen crypto-native funds with assets under management exceeding $1 billion each have expressed interest in participating in these exchanges.
The launch of spot Ether ETFs would complement the existing array of publicly traded crypto funds, which include approximately a dozen spot Bitcoin ETFs that received regulatory clearance earlier this year, collectively holding more than $50 billion worth of BTC.
Dunleavy suggested that Ether ETFs could attract as much as $10 billion in inflows once launched, underscoring the potential market impact.
Looking ahead, similar ETFs for other cryptocurrencies like Solana may soon follow suit, with at least two expected to begin trading in the early part of next year.
This evolving landscape reflects growing investor appetite for regulated exposure to cryptocurrencies through accessible and familiar investment vehicles like ETFs.
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