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Spot Ethereum ETFs Poised for Launch as SEC Nears Final Approvals

The SEC and Bitwise are finalizing details on spot Ethereum ETFs, indicating a potential launch could be imminent despite remaining regulatory challenges.

The launch of several spot Ethereum ETFs is nearing fruition, with the U.S. Securities and Exchange Commission (SEC) and issuers like Bitwise ironing out the final regulatory kinks. Katherine Dowling, Bitwise’s Chief Compliance Officer, shared optimistic insights with Bloomberg on July 9, indicating that each S-1 amendment has shown fewer issues, suggesting a close to the long-awaited approval process.

Bitwise, which prides itself as a “crypto specialist”, is positioning to stand out among giants like BlackRock and Fidelity by leveraging its deep focus on the cryptocurrency sector. Unlike other applicants that rushed to meet a July 8 filing deadline, Bitwise had already submitted its most recent amendment on July 3, demonstrating its proactive stance in the evolving ETF landscape.

While the SEC’s approval timeline remains open-ended, SEC Chair Gary Gensler hinted that the approvals could come “over the summer,” though the term “summer” can be subjectively interpreted. “It’s been a little bit of a long, hot summer for the issuers waiting,” Dowling remarked, echoing the anticipation and anxiety among stakeholders.

Spot Ether ETFs could attract significant market attention and investment, with Bitwise’s Chief Investment Officer Matt Hougan speculating up to $15 billion in inflows within the first 18 months similar to the traction seen with spot Bitcoin ETFs.

Further discussions between Bitwise and the SEC have also touched on potential new products beyond Bitcoin and Ethereum, with Dowling noting a “quite welcoming” attitude from the regulator. However, she expressed concerns that some of these products might only advance under a new SEC chair, given the stringent approval processes and the historic pace of product rollouts.

Despite the focus on Ethereum, other applications for spot cryptocurrency ETFs like VanEck and 21Shares’ spot Solana (SOL) ETFs are also underway, showcasing the growing interest and diversification within the cryptocurrency ETF space.

JP

Greetings! My name is JP, I am based in the US and I am proud to be an author for Krypto Channel. Our news media company is committed to making crypto accessible to everyone, and my area of focus is on the entertainment and lifestyle side of things. Through my articles, I highlight how individuals and businesses are utilizing cryptocurrency in hotels, real estate, boats, cars, watches, and jewelry, and showcase the impressive rate of adoption around the world. My content includes both written articles and video features that take a deep dive into the world of crypto. I conduct interviews with prominent figures in the industry and provide viewers with an insider's look at the latest trends and innovations. As someone who is passionate about the transformative power of crypto, I am excited to be a part of Krypto Channel. Together, we can explore the amazing world of cryptocurrency and all the ways in which it is changing the way we live and work.
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