Some spot Ethereum exchange-traded funds have received the go-ahead and can begin trading on Tuesday, following weeks of back-and-forth on edits to registration statements. The U.S. Securities and Exchange Commission allowed registration forms from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy to go effective as of Monday afternoon. Registration forms for the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust also went effective on Monday. “The launch of the 21Shares Core Ethereum ETF (CETH) marks a significant milestone for 21Shares and for U.S. investors. Today’s approval represents further proof that crypto as an asset class is here to stay,” said Ophelia Snyder, co-founder and president of 21Shares, in an emailed statement. Firms looking to launch their spot Ethereum ETFs received the U.S. Securities and Exchange Commission’s approval of 19b-4 forms in May. However, they still needed their registration statements to go effective before launching. The approvals were unexpected because there had been a lack of engagement between the SEC and issuers. In the week leading up to the deadlines, however, the agency seemingly had a change of heart and began letting exchanges know they would approve of the Ethereum ETFs that week.
Cynthia Lo Bessette, head of Digital Asset Management at Fidelity, said the firm’s spot Ethereum ETF will allow investors to gain exposure to ether through “thoughtful index and product design supported by a dedicated operations and trading team and industry-leading security.””This is exemplary of Fidelity’s rich history and commitment to meeting the evolving needs of our customers,” Lo Bessette added. Spot bitcoin ETFs were approved earlier this year and have since brought in billions of dollars. Ethereum ETFs may attract lower demand than Bitcoin ETFs and may get 10 to 15% of the assets that bitcoin products received, said senior Bloomberg ETF analyst Eric Balchunas in an interview with The Block in May.“That would put them at like $5 to $8 billion, which, again, for any normal launch in the first couple of years. That’s pretty good,” he said. Nate Geraci, president of The ETF Store, said at an event on X hosted by The Block on Monday that the current spot ether market is less than a third of the size of the bitcoin market. “In my mind, that’s a reasonable proxy for what to expect from spot ether ETFs,” Geraci added. “I think we’ll see about a third of the demand of what we’ve seen from spot bitcoin ETFs」。
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