The NYSE Arca has said that asset managers Grayscale and Bitwise can sell and trade spot Ethereum exchange-traded funds (ETFs). The proof comes from papers that the exchange sent to the US Securities and Exchange Commission (SEC) on July 22.
In them, it said that it gave “its approval for listing and registration of the common units” of Grayscale Ethereum Trust and Bitwise Ethereum ETF.
Analysts think that these funds will go public on July 23, but they are still waiting for final approval from the SEC. James Seyffart, an analyst for Bloomberg ETFs, said on X, “We expect them to start trading tomorrow.” That means a lot of documents should show up on the SEC website today that say the prospectuses for the ETFs are now “effective.”
NYSE Greenlights Ethereum Funds
The Chicago Board Options Exchange also announced on July 19 that five funds would be dealing soon. These funds are the 21Shares Core Ethereum ETF, the Fidelity Ethereum Fund, the Invesco Galaxy Ethereum ETF, the VanEck Ethereum ETF, and the Franklin Ethereum ETF. The SEC has to say that these funds are “regulatory effective” before they can be used.
The last thing that needs to happen before trading can begin is for the SEC to approve the funds’ original securities registration S-1 forms. The agency agreed to the producers’ 19-b form asking for rule changes on May 23.
Brokerages like Robinhood and Fidelity can be used by individual buyers to buy and trade Ether ETFs, just like they can be used to buy and trade other ETFs and stocks. It is likely that most Ether ETFs will have managing fees between 0.15% and 0.25%.
If these ETFs get approved and go live, it could open the door for other altcoin ETFs, like the one for Solana’s native token, SOL.
Eric Balchunas, an expert for Bloomberg ETFs, said:
“Remember that after launch there will be flows, then I’m sure more ETH products, then Solana, and then… it’s probably never going to end.” “The dam is no longer there.”
There may not be enough ETH to go around because institutions want it more and more. Kaiko just released a study that says Ether’s 1% market depth is low, which means there is less liquidity. This could make prices more volatile and cause ETH’s price to rise as demand grows. The price of the coin has dropped 1.4% in the last 24 hours and is now $3,457.
