The long-anticipated launch of spot Ethereum ETFs has hit a brief regulatory pause, pushing the expected approval date to July 8, 2025. While market watchers initially anticipated a green light by July 2, the U.S. Securities and Exchange Commission (SEC) has asked issuers to submit revised S-1 filings, delaying the final decision by a few days—largely due to the U.S. Independence Day holiday.
This short delay doesn’t signal regulatory resistance but rather reflects procedural timing. According to Eric Balchunas, Senior ETF Analyst at Bloomberg, the SEC’s feedback on the filings was minimal, indicating that the amendments required are “very light.”
“Unfortunately, we’re going to have to push back our over/under date until after the holiday. The SEC took extra time to get back to people this week, even though the tweaks were very light,” Balchunas tweeted.
He added, “Next week is dead because of the holiday—July 8th the process resumes, and soon after that, they’ll launch.”
The Path to Approval: From 19b-4 to S-1
The approval process for spot Ethereum ETFs follows a two-step framework. First, the SEC must approve the 19b-4 filings, which relate to exchange rule changes allowing the ETFs to be listed. This milestone was achieved in May 2025, marking a landmark moment for crypto adoption in traditional finance.
The second and final step involves the review of S-1 registration forms, which detail fund structure, fees, custody arrangements, and risk disclosures. These are now under SEC review, with issuers expected to resubmit updated versions by July 8.
👉 Discover how regulatory milestones are shaping the future of digital asset investing.
Strategic Fee Waivers Aimed at Institutional Adoption
As competition among asset managers heats up, several major financial firms are offering aggressive fee structures to attract early institutional capital.
Franklin Templeton announced a sponsor fee of 0.19%, which will be fully waived for the first $10 billion in assets under management (AUM) over a six-month period. This move lowers entry costs for large investors and positions Franklin’s ETF as a cost-competitive option in the emerging market.
Similarly, VanEck set its fee at 0.20% and will waive it for the first $1.5 billion in AUM, with the waiver lasting until an unspecified date in 2025. These incentives are designed to build initial liquidity and encourage long-term holdings.
Notably, industry giants BlackRock and Fidelity have not yet disclosed their fee structures, fueling speculation about their entry strategy. Given their massive investor networks, their pricing decisions could significantly influence market dynamics once revealed.
Institutional Interest in Ethereum Grows
Ethereum’s role as a foundational platform for decentralized finance (DeFi), smart contracts, and real-world asset tokenization is driving growing interest from institutional players.
Jupiter Zheng, Partner at HashKey Capital's Liquid Fund, highlights Ethereum’s broad utility:
“Institutions might find Ethereum attractive for its potential in sectors like finance, supply chain, and technology.”
Its transition to proof-of-stake and ongoing scalability upgrades via rollups and EIPs have improved energy efficiency and transaction throughput—key considerations for ESG-conscious investors.
👉 Explore how institutions are integrating blockchain technology into mainstream portfolios.
Market Outlook: Rally Expected, But “Sell the News” Sentiment Looms
While the approval of spot Ethereum ETFs is widely seen as bullish, some analysts caution against excessive optimism in the immediate aftermath.
Jupiter Zheng predicts a modest price rally following the launch, driven by initial inflows and positive sentiment. However, he also warns of a potential “sell the news” reaction—a common market pattern where traders take profits after a long-awaited event materializes.
Historical precedent supports this view. After the first spot Bitcoin ETF approvals in early 2024, BTC prices surged initially but corrected within weeks as speculative momentum faded.
Still, long-term fundamentals remain strong. ETFs provide regulated, accessible exposure to Ethereum, potentially unlocking billions in dormant institutional capital.
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Frequently Asked Questions (FAQ)
Q: Why was the Ethereum ETF approval delayed until July 8?
A: The SEC requested minor revisions to S-1 filings from issuers, and due to the July 4 holiday in the U.S., the process was pushed to July 8. The delay is procedural, not indicative of opposition.
Q: What is the difference between 19b-4 and S-1 filings?
A: The 19b-4 filing relates to exchange listing rules and was already approved in May 2025. The S-1 is a registration statement detailing fund operations and must be cleared before trading can begin.
Q: Are spot Ethereum ETFs approved yet?
A: As of now, only the 19b-4 forms have been approved. Final approval depends on S-1 clearance, expected shortly after July 8.
Q: Which companies are launching spot Ethereum ETFs?
A: Major applicants include BlackRock, Fidelity, VanEck, Franklin Templeton, Grayscale, and ARK Invest. All have passed initial regulatory hurdles.
Q: Will Ethereum’s price go up after ETF approval?
A: Analysts expect a short-term rally, though a “sell the news” dip is possible. Long-term, ETFs could drive sustained demand by attracting institutional investors.
Q: How do fee waivers impact Ethereum ETFs?
A: Fee waivers lower entry costs for investors and help issuers gain market share early. They encourage asset accumulation during the critical launch phase.
The upcoming approval of spot Ethereum ETFs marks a pivotal moment in crypto’s integration into mainstream finance. While delayed by a few days, the July 8 deadline keeps the launch firmly on track—ushering in a new era of accessible, regulated digital asset investment.