First US Spot Ether ETFs Set to Start Trading in Coming Weeks – The Average Joe


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    First US Spot Ether ETFs Set to Start Trading in Coming Weeks

    Noah Weidner

    May 23, 2024

    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 $ETH 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, $BTC is up nearly 45%, partly boosted by its halving event last month. Analysts at AllianceBernstein predict the approval could spur a 75% $ETH 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.

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