- Bloomberg ETF analyst Eric Balchunas has revised his prediction, suggesting Ethereum ETFs could start trading as early as July 2.
- The expedited launch of Ethereum ETFs aligns with comments from Nate Geraci, President of ETF Store, who said that the groundwork by the SEC is almost complete.
Crypto investors could soon gain access to Ethereum ETFs sooner than anticipated, according to Bloomberg ETF analyst Eric Balchunas. He has revised his earlier prediction, suggesting that these exchange-traded funds could start trading on exchanges as early as July 2.
The accelerated timeline depends on the US Securities and Exchange Commission (SEC) completing its review of spot Ethereum ETF applications. Balchunas noted that the SEC’s feedback on the S-1 filings from issuers was relatively minimal, primarily requesting minor adjustments. Issuers are expected to respond to these comments within a week. The Bloomberg analyst noted:
The Staff sent issuers comments on S-1s, and they’re pretty light, nothing major, asking for them back in a week. We are moving up our over/under date for the launch of spot Ether ETF to July 2 based on this development.
Balchunas further speculated that the SEC might finalize the applications before the upcoming holiday weekend. “Anything is possible, but this is our best guess as of now,” he added.
UPDATE: we are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they’re pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next… https://t.co/XJZ8JLwEFF
— Eric Balchunas (@EricBalchunas) June 14, 2024
Spot Ethereum ETF Groundwork Is complete
This optimistic outlook aligns with the views of Nate Geraci, President of ETF Store. Geraci believes that the minor nature of the SEC’s comments suggests the substantial groundwork is complete, minimizing the likelihood of significant delays.
This expedited timeline contrasts with earlier indications from SEC Chairman Gary Gensler. During a Senate hearing on June 13, Gensler mentioned that Ethereum ETF approvals might happen over the summer, but did not provide a specific date for their trading debut, per the Crypto News Flash report.
Spot ETH ETFs would allow investors to gain exposure to the world’s second-largest cryptocurrency by market capitalization through a traditional investment vehicle. Proponents believe these instruments will enhance market access for investors and accelerate institutional adoption of Ethereum, similar to the impact of Bitcoin ETFs, as reported by Crypto News Flash.
However, some concerns remain about the potential demand for Ethereum ETFs compared to their Bitcoin counterparts. The absence of staking capabilities, which some Bitcoin ETFs offer, might reduce investor interest in Ethereum products. Despite this concern, Geraci argues that the potential demand for these ETFs is likely underestimated.
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