The United States Securities and Exchange Commission (SEC) has reportedly given preliminary approval to at least three asset managers for their spot Ether exchange-traded funds (ETFs). This development has fueled speculation that these ETFs will start trading as early as next Tuesday.

According to a July 15 report by Reuters, the SEC's approval is now contingent on applicants submitting their final offering documents to the regulator before the end of this week.

Leading the Pack

According to three industry sources cited by Reuters, BlackRock, Franklin Templeton, and VanEck are among the asset managers that have received preliminary approval.

Other notable firms such as Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also in the running to launch their Ether products next week.

One of the sources disclosed to Reuters that all eight spot Ether (ETH) ETFs are expected to launch simultaneously, akin to the SEC's handling of the spot Bitcoin (BTC) ETFs.

Cointelegraph contacted BlackRock, Franklin Templeton, and VanEck for comments but has not received immediate responses. The SEC has reportedly delivered final instructions to asset managers preparing to launch Ether ETFs.

Bloomberg ETF analyst Eric Balchunas noted that the Commission has instructed issuers to submit their final S-1 filings by July 16. Balchunas also highlighted that all applicants must state the fee attached to their spot Ether ETFs when submitting their amended S-1 filings this week.

Countdown to Approval

Balchunas expects the SEC to officially approve the S-1s following Monday after trading hours close, paving the way for the spot Ether ETFs to begin trading on Tuesday, July 23.

This timeline aligns with recent comments made by Bitwise's chief compliance officer, Katherine Dowling, who stated that there have been "fewer and fewer issues" vetted back and forth between the issuers and the SEC with the amended S-1 filings.

"So that points all signs in the direction that we are close. We're close to the finish line on the launch," Dowling said on July 9.

Market Impact

Bitwise's chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading. This is roughly the same amount that the spot Bitcoin ETFs have garnered since their launch six months ago.

Should the approval go through, these spot Ether ETFs would be listed on major exchanges such as Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange.

Currently, Ether is trading at $3,484, marking a 6.7% increase over the past 24 hours. As the market eagerly awaits the final approval, all eyes are on the SEC and the asset managers to see if they meet the impending deadline.