SEC signals possible ETH fund launches next week: Sources

The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks

by Ben Strack /

July 16, 2024 10:49 am

kkssr/Shutterstock modified by Blockworks

Fund issuers looking to offer spot ether ETFs in the US have heard from the Securities and Exchange Commission — with sources saying the dialogue points to launches next week.

The securities regulator has asked the companies to submit their final registration statements, or S-1s, for the proposed ETH funds by end of day on Wednesday, two people close to the filing told Blockworks.

These documents would address any final suggested revisions and include details left off some previous S-1s, including fees.

Newsletter

Subscribe to The Breakdown

Per the SEC’s request, issuers expect to then request “accelerated” effectiveness of those disclosure documents next Monday, the sources said. That would possibly clear the funds to launch on Tuesday, July 23.

One of the people close to the filings said something could always come up to foil that timeline, but noted all signs point to it being “go time” for the ETH funds.

The source’s comments confirm similar details shared Monday on X by Bloomberg Intelligence analysts.

A spokesperson for the SEC did not immediately return a request for comment.

The SEC in May approved the ETH ETF-related proposals filed by exchanges on which the funds would be listed. Despite the landmark ruling, issuers had to iron out additional disclosure details with a separate unit of the regulator — the SEC’s Division of Corporation Finance — before the funds could be cleared to trade.

Industry analysts and executives at the time guessed that process could take between two weeks and several months.

One of the people close to the matter said the dialogue between the SEC and fund issuers has been done at “a reasonable pace.”

The ether ETFs are set to come to market a little more than six months after the SEC allowed the first US spot bitcoin ETFs to start trading in January. Those funds have seen $16 billion of net inflows since then.

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens