Ethereum ETFs in the ‘Window Dressing’ Phase With Potential Approval in Weeks

The race for spot Ethereum exchange-traded funds (ETFs) in the United States is gradually ending. Steve Kurz, Head of Asset Management at Galaxy Digital, seems optimistic about the approval of spot Ethereum ETFsthis month.

Kurt stated that the approval process has reached a window dressing' phase, with just the final touches remaining.So, he believed that the US Securities and Exchange Commission (SEC) would stamp its approval in weeks.

Galaxy Says Approval Process of Ethereum ETFs Enters Final Phase

Galaxy Digital's Head of Asset Management Kurz believes the spot ETH ETFs approval would not exceed this July.

In an interview with Bloomberg TV on July 2, Kurz mentioned that the ETH ETFs approval process has reached the final phase. He also noted that the SEC is fully engaged in the process with the fund issuers.

Kurz stated: Look, we've done this before. This is methodical; this is window dressing, and the SEC is engaged."

The Galaxy executive tried to correlate the approval process between spot Bitcoin ETFs and Ethereum ETFs. According to Kurz, the products share similarities and maintain the exact approval phases.

Further, he pointed out that the asset issuers completed the same processes while pursuing BTC ETFs. So they understood the details of each step.

Galaxy Digital is among the eight asset managers that applied for spot Ethereum ETF through its collaboration with Invesco. Others include BlackRock, Fidelity, ARK Invest, VanEck, iShares, Grayscale, and Franklin Templeton.

Besides Kurz, other prominent ETF analysts have predicted a similar course for the approval of spot ETH ETFs.

On June 28, Eric Balchunas, a senior Bloomberg ETF analyst, withdrew his previous estimation for the SEC ETF approvals. The change came as the SEC readjusted its schedule in responding to asset managers regarding their S-1 forms.

Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they'll launch... https://t.co/0ZQR7yiBLt

- Eric Balchunas (@EricBalchunas) June 28, 2024

SEC Demands Minor Updates From ETF Issuers

The SEC has approved the applicants' 19b-4 documents, supporting the products' listing on three US stock exchanges: CBOE, NYSE, and Nasdaq.

However, the agency has yet to approve the S-1 forms, which will authorize the launch of the ETFs. The forms contain information regarding new securities for investors in the products.

Some details include the nature of the fund's structure, investment strategy, management, and the underlying asset's performance tracking methods.

A Bloomberg July 2 report, citing sources familiar with the matter, said the SEC called for an amendment to S-1 forms and mandated that fund issuers submit their updated forms on or before July 8.

The anonymous sources noted that the regulator expected asset managers to address some minor issues in the forms. It also noted the agency might still request an additional filing round afterward before its approval.

Amid the buzz about the upcoming Ethereum ETFs debut, many participants wondered if it could match the growth of BTC ETFs, which have accumulated over $52 billion in assets.

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