Spot Ether ETFs get NYSE Arca clearance, await SEC’s final authorization

The funds still await the SEC's approval of S-1 forms. Their launch in the United States is expected to take place on July 23.

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The NYSE Arca has confirmed its approval to list and trade spot Ethereum exchange-traded funds (ETFs) from asset managers Grayscale and Bitwise.

According to documents filed with the United States Securities and Exchange Commission (SEC) on July 22, the exchange has certified “its approval for listing and registration of the common units” of Grayscale Ethereum Trust and Bitwise Ethereum ETF.

The funds are still pending the security regulator’s authorization to debut, and analysts anticipate a launch date of July 23.

“We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective,”” said Bloomberg ETF analyst James Seyffart on X.

On July 19, the Chicago Board Options Exchange confirmed the launch of five funds for trading: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. These funds also wait for “regulatory effectiveness” from regulators.

The SEC must approve the funds’ initial securities registration S-1 forms, the final step before trading. On May 23, the agency approved the issuers’ 19-b form proposing rule changes.

To buy Ether (ETH) ETFs, retail users can use a brokerage listing the funds, such as Robinhood or Fidelity. This process is similar to purchasing and trading other ETFs and stocks. Management fees for the vast majority of Ether ETFs will range from 0.15% to 0.25%.

Source: James Seyffart

The ETFs are expected to open the door to other altcoins ETFs, including Solana’s native token, SOL. “Keep in mind after launch there are flows and then add’l ETH products I’m sure, then Solana, and then.. it’s probably never going to end. The dam has broken,” said Bloomberg ETF analyst Eric Balchunas.

Institutional demand for ETH could lead to a supply shortage. A recent report from Kaiko highlighted that Ether’s 1% market depth is low, indicating reduced liquidity. This could result in increased price volatility and drive ETH’s price higher amid rising demand. The cryptocurrency is trading at $3,457 at the time of writing, down 1.4% over the past 24 hours.