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Galaxy expects spot Ethereum ETF in July, is optimistic about more crypto ETFs

Galaxy Digital head of asset management Steve Kurz said the SEC could approve a spot Ethereum ETF before the end of July and described prospects for other crypto ETFs.

On July 2, Kurz told Bloomberg that he expects approvals in “weeks, not days” and within the month.

Kurz said Galaxy has worked with the SEC on applications for months and noted the firm’s upcoming spot Ethereum ETF is similar to its existing spot Bitcoin ETF (BTCO). Galaxy created both funds in partnership with the investment management firm Invesco.

Kurz said:

“We know the plumbing, we know the process… The SEC is engaged.”

Possibility of more crypto ETFs

Kurz also expressed optimism about approvals for other spot crypto ETFs beyond Ethereum. He said that legislation, including laws defining securities, is necessary and that he believes the process will occur even if Joe Biden remains president.

Kurz cited Bitcoin ETF performance as a sign of demand, stating:

“People want this. Retail wants this, investors want this.”

Two firms recently proposed ETFs for Solana (SOL). Kurz said that although Galaxy has high exposure to Solana and is the blockchain’s largest validator, broad legislation permitting new crypto ETFs is more important than an ETF focused on any single crypto.

He also believes that a Solana CME futures market is a prerequisite for a Solana spot ETF. No SOL futures market currently exists.

Predictions in line with Balchunas

Galaxy’s expectations are in line with the latest predictions from Bloomberg ETF analyst Eric Balchunas, who expects spot Ethereum ETFs to launch shortly after July 8.

Balchunas said the SEC has asked spot Ethereum ETF issuers to amend their S-1 registration forms by July 8. The agency may seek further amendments.

Balchunas previously predicted the funds would launch by July 2.

On May 23, the SEC approved 19-b4 rule changes that allow exchanges to list and trade each fund. However, those approvals did not permit asset managers to issue funds.

Asset managers now await approval of their S-1 and S-3 registration funds, which will finally allow them to launch their Ethereum ETFs for trading.

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