The United States Securities and Exchange Commission delivers a landmark decision on July 16, 2024, granting preliminary approval to multiple asset managers for their spot Ethereum exchange-traded funds. The move sets the stage for what could be one of the most significant regulatory developments in the cryptocurrency industry since the approval of spot Bitcoin ETFs earlier in the year.
TL;DR
- The SEC gives preliminary approval to at least three asset managers for spot Ethereum ETFs, with eight total expected to launch simultaneously
- BlackRock, Franklin Templeton, VanEck, Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are all in the final stages of approval
- Issuers instructed to submit final S-1 filings by July 16, with trading potentially beginning on July 23, 2024
- Bitwise projects up to $15 billion in inflows within the first 18 months of Ethereum ETF trading
- South Korea considers delaying its planned 20% tax on cryptocurrency gains amid growing industry pressure
SEC Delivers Final Instructions to Ethereum ETF Issuers
According to multiple industry sources, the SEC has formally delivered its final set of instructions to asset managers preparing to launch spot Ethereum ETFs. Bloomberg ETF analyst Eric Balchunas reports that the Commission instructed all applicants to submit their final S-1 registration filings by July 16, including mandatory disclosure of management fees attached to each product.
The regulatory process has moved with remarkable speed following the initial approval of 19b-4 filings on May 23, 2024. Gary Gensler’s commission delivered a first round of feedback on the S-1 filings in late June, and the rapid progression since then signals a clear willingness from the SEC to bring these products to market without further delay.
Bitwise’s chief compliance officer Katherine Dowling notes that the back-and-forth between issuers and the SEC has shown “fewer and fewer issues” with each successive amendment. “That points all signs in the direction that we are close. We’re close to the finish line on the launch,” Dowling states in a July 9 interview.
Eight Ethereum ETFs Expected to Launch Simultaneously
In a pattern mirroring the SEC’s approach to spot Bitcoin ETFs in January 2024, all eight spot Ethereum ETFs are expected to launch simultaneously. The asset managers include some of the largest financial institutions in the world: BlackRock, the world’s largest asset manager with over $10 trillion under management; Franklin Templeton; VanEck; Fidelity; ARK 21Shares; Grayscale; Bitwise; and Invesco Galaxy.
Reuters reports that at least three of these firms have received explicit preliminary approval. The remaining applicants are in advanced stages of the review process. If approved, the spot Ether ETFs would be listed on the Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange — providing mainstream investors with direct exposure to Ethereum through traditional brokerage accounts.
Bitwise’s S-1/A filing reveals a unitary management fee of 0.20% per annum, with the Ethereum pricing index sitting at $3,468.20 on July 16, 2024. Fee competition among issuers is expected to intensify as the launch date approaches, potentially benefiting investors through lower costs.
Bitwise Projects $15 Billion in Inflows
Bitwise’s chief investment officer Matt Hougan makes a bold prediction: spot Ether ETFs could attract up to $15 billion in net inflows within their first 18 months of trading. This projection roughly matches the total inflows that spot Bitcoin ETFs have attracted in their first six months, suggesting significant investor appetite for Ethereum exposure through regulated vehicles.
The approval of Ethereum ETFs marks a fundamental shift in the SEC’s stance on the second-largest cryptocurrency. For years, regulators have debated whether Ethereum qualifies as a security under U.S. law. The implicit recognition through ETF approval signals that the SEC accepts Ethereum’s status as a commodity-like asset, at least in the context of exchange-traded products.
Market data from CoinShares shows that digital asset investment inflows have already reached a record $17.8 billion year-to-date, highlighting the growing institutional interest in the crypto market even before the Ethereum ETF launch.
South Korea Considers Delaying 20% Crypto Tax
In a parallel regulatory development, South Korea announces it is considering delaying its planned 20% tax on cryptocurrency gains. The proposed delay comes amid growing pressure from local investors and industry stakeholders who argue that the tax would stifle innovation and drive trading activity to offshore platforms.
South Korea has long been one of the most active cryptocurrency trading markets in the world, with the so-called “Kimchi premium” — the price difference between Bitcoin on Korean exchanges and global platforms — serving as a barometer for local market sentiment. The potential tax delay reflects the government’s balancing act between regulatory oversight and maintaining the country’s position as a crypto hub.
The delay, if implemented, would push the taxation timeline beyond the originally planned date, giving Korean crypto investors and exchanges more time to prepare for the regulatory framework. Industry observers note that the move could set a precedent for other Asian nations considering similar taxation policies.
Regulatory Momentum Builds Globally
The dual developments of U.S. Ethereum ETF approvals and South Korea’s tax delay underscore a broader shift in global cryptocurrency regulation. After years of uncertainty and enforcement-heavy approaches, regulators in major markets are increasingly moving toward frameworks that accommodate digital assets while maintaining investor protections.
In the European Union, the Markets in Crypto-Assets Regulation (MiCA) framework continues its phased implementation, providing a comprehensive regulatory structure for crypto businesses operating across EU member states. The combination of U.S. ETF approvals, Asian tax deliberations, and European regulatory frameworks suggests that 2024 is shaping up to be a pivotal year for crypto regulation worldwide.
Why This Matters
The SEC’s preliminary approval of spot Ethereum ETFs represents more than just a new investment product — it is a de facto regulatory recognition of Ethereum as a legitimate asset class accessible through traditional financial infrastructure. The simultaneous consideration of crypto-friendly policies in South Korea and the ongoing implementation of MiCA in Europe signals that the regulatory pendulum is swinging decisively toward integration rather than restriction. For investors, developers, and the broader crypto ecosystem, July 16, 2024 marks the moment when Ethereum’s institutional future becomes a tangible reality.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
Bitwise projecting 15B inflows in 18 months seems aggressive but BTC ETFs blew past similar estimates. the fee disclosures in those S-1 filings will be the real battleground
Katherine Dowling from Bitwise has been grinding on compliance for months. having eight issuers launch simultaneously is wild, compare that to BTC ETFs staggered rollout
Balchunas calling the July 23 launch date back in May was bold. dude has been spot on with every ETF timeline so far