{"id":15427,"date":"2024-07-23T10:26:36","date_gmt":"2024-07-23T07:26:36","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-approves-s-1-filings-for-eth-etf-trading-begins-july-23\/"},"modified":"2024-07-23T10:26:36","modified_gmt":"2024-07-23T07:26:36","slug":"sec-approves-s-1-filings-for-eth-etf-trading-begins-july-23","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-approves-s-1-filings-for-eth-etf-trading-begins-july-23\/","title":{"rendered":"SEC Approves S-1 Filings for ETH-ETF; Trading Begins July 23"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>The SEC has approved S-1 filings for ETH-ETF, with trading set to commence on July 23.<\/li>\n<li>Experts do not anticipate a frenzy following the launch, citing risks of increased volatility and a potential Ethereum pullback.<\/li>\n<\/ul>\n<\/div>\n<p>The U.S. Securities and Exchange Commission (SEC) has <a href=\"https:\/\/www.sec.gov\/edgar\/browse\/?CIK=1992508&#038;owner=exclude\">registered<\/a> S-1 filings for spot Ethereum-ETFs, with trading of these products beginning on July 23.<\/p>\n<p>Among the approved proposals are those from 21Shares, Bitwise Asset Management, BlackRock, Invesco, Franklin Templeton, Fidelity Investments, and VanEck.<\/p>\n<div class=\"wp-block-text-wrappers-update article_update\"><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>As with BTC-ETF, ETH-ETF issuers have begun adding liquidity to the product.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?22\" data-telegram-post=\"forklog\/38643\" data-width=\"100%\"><\/script>\n<\/div>\n<p>Previously, the Commission approved applications from ProShares, as well as the launch of a mini-ETF and the conversion of the <span data-descr=\"Grayscale Ethereum Trust\" class=\"old_tooltip\">ETHE<\/span> trust into an exchange-traded fund by Grayscale.<\/p>\n<p>On May 23, the SEC <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-spot-ethereum-etfs-key-developments\">approved<\/a> 19b-4 forms for the instrument.<\/p>\n<p>None of the listed applications include staking. Hester Peirce of the SEC assured that \u201cany feature of the products is always open for review.\u201d<\/p>\n<p>Bloomberg analyst Balchunas believes that both staking and the option for redemption in kind, which are currently not included in the proposals, could become possible with a change in the U.S. presidency. Variant&#8217;s chief legal officer Jake Chervinsky stated that such innovations are a matter of time, not possibility.<\/p>\n<p>Wintermute forecasts that the spot Ethereum-ETF will attract <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-07-22\/sec-said-to-approve-spot-ether-etfs-in-latest-crypto-milestone\">$3.2\u20134 billion<\/a> over the next 12 months, with Ethereum&#8217;s price rising by 24%. These conservative estimates are shared by Balchunas and ETF Store president Nate Geraci, writes <a href=\"https:\/\/www.theblock.co\/post\/306699\/spot-ethereum-etfs-get-final-sign-off-to-begin-trading-tuesday\">The Block<\/a>. The former estimated inflows at $5-8 billion, while the latter predicted a third of the demand for BTC-ETF (~$6 billion).<\/p>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">July 23, 2024 | 12:51<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>In comments to ForkLog, OKX&#8217;s commercial director Lennix Lai warned of the risks of increased Ethereum volatility following the start of trading. The expert attributed this to the conversion of ETHE into a fund and the potential desire of some investors to lock in profits on trust shares purchased at a premium to ETH&#8217;s price.<\/p>\n<p>OKX estimates that in the first week post-launch, spot ETH-ETFs could attract up to $500 million from institutional investors. This is less than what flowed into BTC-ETF following their approval in January, due to uncertainty over a significant shift in the Federal Reserve&#8217;s monetary policy. While market participants initially expected three to four rate cuts in 2024, they now hope for only one or two, which dampens risk appetite, specialists added.<\/p>\n<p>According to OKX, similar products with other cryptocurrencies may emerge after ETH-ETF, as well as more complex instruments that consider staking or represent a basket of several underlying assets linked to niches like DeFi and NFT.<\/p>\n<p>TEHNOBIT CEO Alexander Peresichan reminded that the market often follows the adage \u201cbuy on rumors, sell on facts.\u201d This pattern proved relevant for the halving and the start of BTC-ETF trading. The expert did not rule out its repetition with Ethereum following the launch of exchange-traded funds based on the asset.<\/p>\n<p>Peresichan emphasized that a less optimistic market environment compared to the beginning of the year increases the likelihood of such a scenario. This is due to the persistently high key rate, which the Federal Reserve has not yet decided to lower due to high inflation, he explained.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIn the medium and long term, the launch of ETH-ETF will support Ethereum&#8217;s rate, as it will open direct access to the asset for institutional capital,\u201d<\/em> noted the top manager.<\/p>\n<\/blockquote>\n<p>The TEHNOBIT CEO does not expect a frenzy around the instrument, estimating inflows in the first ten days at $300-700 million (compared to ~$1 billion for BTC-ETF in the same period). Peresichan attributed this assessment to the market situation and macroeconomic climate, as well as the fact that this is not the first spot crypto-ETF.<\/p>\n<p>The expert doubted the emergence of new similar products in the near future due to the not entirely defined regulatory status of digital assets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe SEC has a clear position only on Bitcoin, which it has never called a security. Clarity on Ethereum has only recently emerged [\u2026]. As for other altcoins, there is still no regulatory certainty. Institutions preferring a more conservative market strategy may view this as additional risks,\u201d<\/em> concluded the specialist.\u00a0<\/p>\n<\/blockquote>\n<\/div>\n<p>Earlier, Standard Chartered&#8217;s head of research Geoffrey Kendrick <a href=\"https:\/\/u1f987.com\/en\/news\/standard-chartered-identifies-etf-contenders-for-2025\">suggested a new phase for exchange-traded funds in 2025<\/a>. In his view, SOL and XRP are next in line. Geraci predicted the emergence of ETFs based on Bitcoin, Ethereum, and Solana in the \u201ccoming months.\u201d<\/p>\n<p>On July 8, Cboe BZX filed a 19b-4 form for 21Shares Core Solana ETF and VanEck Solana Trust. Balchunas believes the SEC could register the instrument by mid-March 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has approved S-1 filings for ETH-ETF, with trading set to commence on July 23. Experts do not anticipate a frenzy following the launch, citing risks of increased volatility and a potential Ethereum pullback. The U.S. Securities and Exchange Commission (SEC) has registered S-1 filings for spot Ethereum-ETFs, with trading of these products beginning [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,46,1150,1138,36],"class_list":["post-15427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-ethereum","tag-news-plus","tag-opinions","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15427"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15426"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}