Earlier this week, the Securities and Exchange Commission (SEC) shocked the crypto community by asking exchanges to amend their filings for Ethereum exchange-traded funds (ETFs) ahead of the agency’s review. Investors anticipated the approval of spot Ether ETFs yesterday, and that’s exactly what happened — sending up 4%, with a weekly return of 32%.
- A source close to the matter says that the SEC’s unexpected rule change means asset managers still have “a lot of work” to do on the S-1 filings required to list the ETFs.
- These funds will begin trading once the SEC approves applications from nine asset managers, including Fidelity, BlackRock, and Grayscale.
What this means for ETH: Since the first spot bitcoin ETF was approved on Jan. 10, is up nearly 45%, partly boosted by its halving event last month. Analysts at AllianceBernstein predict the approval could spur a 75% rally, but Amplify ETFs’ Christian Magoon warns it might be a “sell the news” event. Regardless, these ETFs could generate hundreds of millions in extra fees for issuers, with Bloomberg’s Eric Balchunas expecting Ether ETFs to receive 10-15% of the inflows that Bitcoin ETFs got — potentially more than $10B.
