US regulators said to be approving spot ether ETFs for launch by July 4

Eight asset managers, including BlackRock, VanEck, Franklin Templeton and Grayscale Investments, are seeking to launch the funds

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The SEC is expected to approve spot ether ETFs as soon as next week, according to people familiar with the situation. Photo: Reuters

Published: 11:35am, 27 Jun 2024

The US Securities and Exchange Commission (SEC) could approve exchange traded funds (ETFs) tied to the spot price of ether as soon as July 4, as talks between asset managers and regulators enter the final stages, industry executives and other participants told Reuters.

Eight asset managers, including BlackRock, VanEck, Franklin Templeton and Grayscale Investments, are seeking SEC approval for the funds. Most of them had rolled out spot bitcoin ETFs in January, the culmination of a decade-long tussle with regulators. Grayscale again hopes to convert an existing trust into an ETF.

Executives at two firms, who requested anonymity because of the confidential nature of the discussions, said the process of amending the offering documents has progressed to resolving only “minor” issues. Those documents must be approved before the ETFs can be launched.

A lawyer working with one of the issuers, who also requested anonymity, said it was “down to the finishing touches” and that approval is “probably not more than a week or two away”.

The SEC declined to comment. In an interview with Reuters earlier this month, SEC chairman Gary Gensler said the launch date depends partly on how quickly issuers respond to the regulator’s queries.

The January launch of funds tracking the spot price of bitcoin was one of the most successful in the ETF market, drawing some US$8 billion in assets, Morningstar Direct data showed.