Quick Take:

• Spot ether ETFs anticipated to be listed on exchanges in July or August, as per Galaxy Digital report.
• Regulatory approval expected for spot ether ETFs on Thursday, but trading may commence later this summer.

The launch of spot ether exchange-traded funds (ETFs) is poised to clear a significant regulatory milestone on Thursday, with expectations for their listing on exchanges by July or August, according to insights from a fresh Galaxy Digital report. While these ETFs are anticipated to receive approval, their actual trading debut is forecasted to occur later in the summer, contrasting with the swift listings observed for bitcoin-based ETFs.

Galaxy Digital’s report, unveiled on Tuesday, projects a timeline for the listing of spot ether ETFs on exchanges during the summer months. This delay between potential approval and trading commencement contrasts starkly with the rapid listing process seen for their bitcoin counterparts.

Before shares of spot ether ETFs can transition, regulatory green lights are required for two types of filings: 19b-4s, representing proposed rule change forms, and S-1s, representing registration statements. In contrast to spot bitcoin ETFs, which saw swift approval for both filings, the timeline for spot ether ETFs is expected to extend over weeks or months, rather than days, as outlined in the report.

Spot ether ETFs carry notably higher risk profiles compared to their bitcoin counterparts, potentially influencing regulators’ decision-making processes. Moreover, the diversity of decentralized applications (dapps) built on the Ethereum network could further prolong the approval and listing process. Galaxy Digital highlights that these dapps introduce a range of disclosable elements, potentially complicating the final regulatory approval required for spot ether ETFs to commence trading.