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Ethereum ETFs get final approval to trade in the US

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The U.S. SEC has granted the final go-ahead for the first spot ETH ETFs in the United States. Trading is set to begin tomorrow, July 23. 

Today, July 22, the U.S. Securities and Exchange Commission accepted the securities filings of several spot Ethereum (ETH) exchange-traded funds, clearing them for trading starting on Tuesday, as scheduled.

The SEC approved ETH ETF products from a total of eight issuers, including asset management giants Fidelity, Blackrock and VanEck, as well as 21Shares, Bitwise and others. 

The SEC first approved applications for the above ETH ETFs at the end of May, but firms were still waiting for their S-1 filings — the registration of new securities — to be approved in order for trading to officially start. Last week, the SEC informed issuers that they would need to finalize their S-1 documents by July 17 in order to receive approval for trading to start on July 23. 

How will the price of ETH react? 

A report from Kaiko Research published today suggested that the outlook for the price of ETH after the spot ETFs launch is unclear. The firm noted that when futures-based ETH ETFs launched last year, the demand was “underwhelming.”

The price of ETH has dropped about 2.5% over the past 24 hours, currently trading near $3,400. Earlier today, analysts from IntoTheBlock noted that the Ethereum price faces critical resistance around $3,500 levels.

Ethereum ETFs get final approval, trading to start Tuesday - 1
30-minute ETH price chart, July 15-22, 2024 | Source: crypto.news

In general, as with spot Bitcoin (BTC) ETFs, analysts — and the industry more broadly — see the launch of a spot ETF product as a bullish sign for wider adoption. Since ETFs are traded on traditional exchanges via brokerage accounts, a wider swathe of more traditional investors now have access to the two largest cryptocurrencies by market cap via a vehicle that they are already comfortable trading. 

First Bitcoin, now Ethereum

Spot Bitcoin ETFs were approved for trading in the U.S. in January and, since then, have seen record inflows. Since the launch of spot BTC ETF trading, the price of Bitcoin has increased almost 50%, currently trading near $67,700.

Ethereum ETFs get final approval, trading to start Tuesday - 2
4-hour BTC price chart, Janurary 8 – July 22, 2024 | Source: crypto.news



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Bitcoin ETF options coming ‘soon’ following CFTC clearance 

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The U.S. Commodity Futures Trading Commission issued an advisory through its Division of Clearing and Risk stating it would no longer have a role in clearing Bitcoin ETF options.

The agency is transferring this responsibility to the Options Clearing Corporation, according to a prepared statement.

“[..] In light of relevant precedents in the courts, it is substantially likely these spot commodity ETF shares would be held to be securities. Therefore, DCR’s position is the listing of these shares on SEC-registered national securities exchanges does not implicate the CFTC’s jurisdiction.”

CFTC staff advisory.

According to the commission, the OCC, which serves as the “sole issuer of all equity options” in the U.S., now holds the final authority to decide whether these options will be listed.

Experts believe the OCC’s approval could be imminent, with ETF analyst Eric Balchunas predicting it will come “very soon.” 

Meanwhile, market commentator Andrew said the CFTC’s move came much quicker than expected, as approval was initially anticipated by late Q1 2025, but this decision could speed things up.

Bitwise Invest’s Jeff Park suggested that while he was optimistic about the chances of a year-end approval, he wouldn’t “short the odd.”

The advisory follows the SEC’s approval last month, which cleared applications from the New York Stock Exchange and the Chicago Board Options Exchange to list and trade Bitcoin ETF options.

Options contracts give investors the right, but not the obligation, to buy or sell an underlying asset at a specified price before a set date. The SEC believes options trading could bring “better price efficiency” and “less volatility” to Bitcoin ETFs, helping to stabilize the market while making it more transparent and efficient overall.

Bitcoin advocates view the approval of Bitcoin ETF options as a game-changer, bringing more liquidity to the market. See below.

Earlier this year, Grayscale CEO Michael Sonnenshein advocated for the swift approval of Bitcoin ETF options, saying that these offerings could pull in more players, like broker-dealers, and deepen Bitcoin’s ties with traditional finance.

Crypto influencer Mario Nawfal, in a recent social media post, highlighted the buzz around Bitcoin ETF options, saying institutional investors are “drooling” over the opportunities.

“This is your mainstream finance world, now featuring Bitcoin,” he wrote.

Bitcoin reacted positively to the development, breaking past the $91,000 resistance level it struggled with over the past two days. At press time, the flagship cryptocurrency was trading at $91,293, up 2.4%.





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Ether (ETH) ETF Inflows Hit Record, Bitcoin ETF Inflows Soar as BTC Price Eyes $90K

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“Assets in the US spot bitcoin ETFs are now up to $84b, which is 2/3 of the way to what gold ETFs have, all the sudden there’s a decent shot they surpass gold before their first birthday (we predicted it would take 3-4yrs),” Eric Balchunas, a senior analyst at Bloomberg, said in a post on X.



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Bitcoin (BTC) ETFs See Record $1.3B Inflows on Trump Win, Fed Rate Cuts

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BTC trades above $76,000 in Asian morning hours Friday, up nearly 10% over the past week. In line with analyst expectations, the Federal Reserve cut rates by 25 basis points on Thursday in a move that typically supports risk assets like bitcoin by increasing liquidity and weakening the dollar.



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