Steve Kurtz, head of asset management at Galaxy Digital, said the SEC could approve an Ethereum spot ETF by the end of July, and also outlined the outlook for other crypto ETFs.
On July 2, Chancellor Kurz told Bloomberg that he expected approval to come “within weeks, not days,” and possibly within the month.
Kurtz said Galaxy has been working with the SEC on its filing for months, noting that the company's upcoming Spot Ethereum ETF will be similar to the existing Spot Bitcoin ETF (BTCO), which Galaxy created in partnership with investment management firm Invesco.
Kurz said:
“We know the plumbing, we know the process … the SEC is involved.”
More Crypto ETFs on the horizon
Kurtz also expressed optimism about the approval of a spot cryptocurrency ETF other than Ethereum, saying that legislation is needed, including a law defining securities, and he believes that process will be carried out even if Joe Biden remains in office.
Kurtz cited the performance of Bitcoin ETFs as a sign of demand, saying:
“People want this. Retailers want this. Investors want this.”
Two firms have recently proposed ETFs for Solana (SOL). Although Galaxy has high exposure to Solana and is the blockchain’s largest validator, Kurtz said broad legislation allowing new cryptocurrency ETFs is more important than an ETF focused on a single cryptocurrency.
He also believes a Solana CME futures market is a prerequisite for the Solana Spot ETF. Currently, no Solana futures market exists.
Consistent with Balchunas' prediction
Galaxy’s prediction is in line with the latest forecast from Bloomberg ETF analyst Eric Balchunas, who expects a spot Ethereum ETF to launch shortly after July 8.
Balchunas said the SEC is asking spot issuers of Ethereum ETFs to amend their S-1 registration forms by July 8. The SEC may require further amendments.
Balchunas previously expected the fund to launch by July 2nd.
On May 23, the SEC approved changes to rule 19-b4 to allow exchanges to list and trade the funds, but the approval did not allow asset managers to issue the funds.
The asset manager is currently awaiting approval of its S-1 and S-3 registered fund, which will ultimately allow the Ethereum ETF to begin trading.
