Nikolas Sargeant
Eight United States-based spot Ether exchange-traded funds (ETFs) are nearing approval, but Bitwise's chief compliance officer Katherine Dowling states the exact launch date remains uncertain.
"We're seeing in the S-1 amendments that there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC," Dowling told Bloomberg on July 9. "So that points all signs in the direction that we are close. We're close to the finish line on the launch."
Form S-1s provide details about the issuer and the securities they plan to offer. Once approved, the products can launch. SEC Chair Gary Gensler recently predicted a summer launch for spot Ether ETFs. "Everyone has a different definition of summer. It's been a little bit of a long, hot summer for the issuers waiting," Dowling commented. You
Issuers have been waiting six weeks for SEC approval of their S-1 registration statements following the regulator's approval of several 19b-4 filings on May 23. Amended S-1s were submitted in early July after the SEC's initial feedback.
Bitwise's chief investment officer Matt Hougan estimates that spot Ether ETFs could attract up to $15 billion in inflows during their first 18 months of trading, comparable to spot Bitcoin ETFs' performance since their launch six months ago.
SEC is open to funds beyond BTC and ETH
Dowling revealed that the SEC has shown openness to discussions about non-Bitcoin and Ether products.
"We've actually dialogued with the SEC about the possibility of what's coming down the pipe with new products," Dowling said. "I think our communication with the SEC about the prospects for these products has actually been quite welcoming."
The Chicago Board Options Exchange (CBOE) filed applications for spot Solana ETFs on behalf of VanEck and 21Shares on July 8. However, Dowling is skeptical about the approval of a third spot cryptocurrency ETF under Gensler's leadership.
Senior Bloomberg ETF analyst Eric Blachunas made a similar observation on July 9, suggesting that a spot Solana ETF application would likely be "dead on arrival" if Biden were re-elected and Gensler remained as the financial regulator's head.
