Spot Ether ETFs Are Getting Closer to Launch, But an Exact Date Remains Unknown, Says Bitwise

Eight spot ether exchange-traded funds (ETFs) are closer to going live, but an exact launch date is still unknown, according to Katherine Dowling, chief compliance officer at crypto asset manager Bitwise.

“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.

Form S-1s provide information about the issuer and the securities they intend to offer. Once approved, the products can launch.

SEC Chair Gary Gensler recently tipped the spot ether (ETH) ETFs to launch sometime in the summer.

“Everyone has a different definition of summer. It’s been a little bit of a long, hot summer for the issuers waiting,” said Dowling.

Several spot ether ETF issuers have been waiting for six weeks to have their S-1 registration statements signed off by the SEC after the regulator approved several 19b-4 filings on May 23.

The issuers submitted their amended S-1s in early July after the securities regulator provided a first round of feedback.

Bitwise’s chief investment officer Matt Hougan speculated the spot ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading — roughly the same amount that the spot bitcoin ETFs have mustered in since launching six months ago.

SEC is open to funds beyond BTC, ETH

Dowling revealed the SEC has also been open to discussions concerning non-bitcoin and ether products as well.

“We’ve actually dialogued with the SEC about the possibility of what’s coming down the pipe with new products,” said Dowling.

The Chicago Board Options Exchange (CBOE) filed applications to list spot Solana (SOL) ETFs on behalf of VanEck and 21Shares on July 8.

However, Dowling isn’t confident that a third spot cryptocurrency ETF would be approved under Gensler’s leadership.

Senior Bloomberg ETF analyst Eric Blachunas made a similar observation on July 9, saying that a spot Solana ETF application would likely be “dead on arrival” if Biden were to be re-elected and Gensler kept on as the head of the financial regulator.