Insider: Ethereum spot ETF review has entered the final stage, expected approval as early as July 4th.

Reuters reported that according to sources, the approval of a spot Ether ETF is in its final stages, awaiting the effectiveness of its registration statement S-1 before trading can commence. However, compared to the Bitcoin spot ETF issued earlier this year, this ETF seems to be generally viewed less favorably and is expected to potentially have a negative or downward impact on the market.

Insider: Only Minor Issues Left

According to an anonymous industry lawyer, negotiations between asset management companies and regulatory agencies regarding the launch of an Ethereum spot ETF have entered the final stages:

Currently, the documents are in the final "polishing stage," and approval is expected to be completed within the next one to two weeks, with the earliest approval anticipated on July 4.

This aligns closely with the prediction of Bloomberg ETF analyst Eric Balchunas.

VanEck Leads Fee War, Ethereum Spot ETF Expected to Launch on July 2

Reportedly, the applying issuers include BlackRock's iShares, VanEck, Franklin Templeton, and Grayscale Investments among eight asset management companies.

Executives from two other companies also revealed that the process of amending the offering documents has progressed to the stage where only "minor issues" need to be resolved.

SEC's Ambiguous Stance

In response, the U.S. Securities and Exchange Commission (SEC) has not provided much feedback, emphasizing that the launch date depends on the issuers' response speed to regulatory issues.

However, SEC Chairman Gary Gensler also stated at Tuesday's Bloomberg Investment Summit:

I don't know the exact approval timing, but progress is smooth.

Gary Gensler: Progress on Approval of Ethereum Spot ETF "Proceeding Smoothly"

Previously, the 11 Bitcoin spot ETFs launched in the U.S. in January this year saw trading volumes exceeding $10 billion within two days of listing. As of today, the product has an Assets Under Management (AUM) of nearly $51.4 billion.

Skepticism Surrounding the Launch of Ethereum Spot ETF

When it comes to the launch of the Ethereum spot ETF, most institutional investors and ETF analysts believe that the performance of the ETF may not be as impressive.

Due to the ETF's lack of staking functionality affecting the demand for spot conversions, and the fundamental differences between Ethereum and Bitcoin in terms of product value and nature, research firms Bernstein and JPMorgan have expressed skepticism about the Ethereum spot ETF, suggesting that the initial market response may be negative.

Bernstein, JPMorgan Both Doubt Demand for Ethereum Spot ETF Compared to Bitcoin - What Are the Differences in Views?

Especially this month, with both Bitcoin and Ethereum experiencing nearly double-digit percentage declines, coupled with selling pressure from the Mt. Gox Bitcoin distribution and the ongoing release of seized Bitcoin by the U.S. and German governments.

Whether the launch of the Ethereum spot ETF can inject new momentum into the crypto market remains to be seen.

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