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The U.S. Securities and Exchange Commission (SEC) is nearing approval of exchange-traded funds (ETFs) tied to the spot price of ether, potentially as soon as July 4, according to industry sources.



Final Stages of Approval

Eight asset managers, including major players like BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, are seeking SEC approval for these funds. Many of these firms successfully launched spot bitcoin ETFs earlier this year, after a prolonged struggle with regulators. Grayscale is also looking to convert an existing trust into an ETF.

Progress and Expectations

Executives at two firms involved in the discussions, who wished to remain anonymous, stated that the process of finalizing the offering documents is now addressing only minor issues. These documents need SEC approval before the ETFs can be launched. A lawyer working with one of the issuers indicated that the approval is likely just a week or two away.

Market Impact

Analysts predict that the launch of the new spot ether ETFs might not be as impactful as the earlier bitcoin ETFs. James Butterfill, head of research at Coinshares, noted that Ethereum’s market cap and trading volumes are smaller compared to Bitcoin.

Current Market Trends

Ether’s price has struggled this month, dropping over 11%, while Bitcoin has seen a 9.8% decline. Typically, Bitcoin’s price movements influence Ether’s performance.

As the crypto community awaits the SEC’s decision, the potential approval of spot ether ETFs marks a significant development in the evolving relationship between cryptocurrency and traditional finance.

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