According to informed sources, the review of the Ethereum spot ETF has entered the final stage, and it is expected to be approved as early as July 4.

Reuters reported that people familiar with the matter revealed that the approval of the Ethereum spot ETF has reached the final stage and only needs to wait for its registration statement (S-1) to become effective before trading can begin. However, this ETF seems to be generally less optimistic than the Bitcoin spot ETF issued earlier this year, and is still expected to have a negative or downward reaction in the market.

Insider: Only small problems remain

According to anonymous industry lawyers, negotiations between asset managers and regulators have entered the final stage regarding the launch of Ethereum spot ETFs:

Now, the document has reached the final "polishing stage" and approval may be completed in the next week or two, with approval expected as early as July 4.

This is quite consistent with the predictions of Bloomberg ETF analyst Eric Balchunas.

( VanEck launches fee war, Ethereum spot ETF is expected to be listed on July 2 )

It is reported that the issuers that applied include eight asset management companies including BlackRock, VanEck, Franklin Templeton and Grayscale Investments.

Senior executives of the other two companies also revealed that the current process of revising the issuance documents has progressed to the stage where only "minor issues" need to be resolved.

SEC’s ambiguity

In response, the U.S. Securities and Exchange Commission (SEC) did not respond much, only emphasizing that the launch date depends on how quickly issuers respond to regulators’ questions.

However, SEC Chairman Gary Gensler also said at the Bloomberg Investment Summit on Tuesday:

I don't know the exact timing of the approval, but it's going well.

( Gary Gensler: Ethereum spot ETF approval progress is "going smoothly" )

Previously, the 11 Bitcoin spot ETFs launched in the United States in January this year exceeded 10 billion US dollars in trading volume within two days of listing. As of today, the product has nearly $51.4 billion in assets under management (AUM).

The issuance of Ethereum spot ETFs is generally not optimistic

When it comes to the issuance of Ethereum spot ETF, most investment institutions and ETF analysts believe that the launch of this ETF may not perform so well.

Due to the lack of staking function of the ETF, which will affect the demand for spot conversion, and the difference in product value and nature with Bitcoin, research institutions Bernstein and JPMorgan Chase both expressed their disapproval of the Ethereum spot ETF, saying that the market’s initial reaction may will be negative.

( Bernstein and JPMorgan Chase both said that the demand for Ethereum spot ETF is far less than that of Bitcoin. What is the difference in their views? )

Especially this month, both Bitcoin and Ethereum experienced nearly double-digit percentage declines. At the same time, there was selling pressure due to Mt. Gox’s distribution of Bitcoins and the German and American governments’ successive transfers of seized Bitcoins.

It seems to remain to be seen whether the launch of the Ethereum spot ETF can inject new impetus into the crypto market.

( BTC is under heavy selling pressure. The US and German governments have successively transferred out of Bitcoin. Has the wave of dumping begun? )