- Ethereum ETFs are expected to launch as early as July 2, according to Bloomberg ETF analyst Eric Balchunas, thanks to minimal SEC feedback and expedited application processes.
- This development could significantly enhance market access and potentially propel ETH prices toward $6,000.
The anticipation surrounding the launch of Ethereum ETFs is building, with predictions suggesting a potential start date of July 2. Bloomberg ETF analyst Eric Balchunas has revised his earlier estimates, highlighting that the expedited timeline is now a real possibility. This development aligns with the views of Nate Geraci, President of ETF Store, who confirmed that the groundwork by the SEC is almost complete.
Spot Ethereum ETF Groundwork is Complete
Crypto investors may soon gain access to Ethereum ETFs, providing a new gateway for market participation. The accelerated launch hinges on the US Securities and Exchange Commission (SEC) finalizing its review of spot Ethereum ETF applications. Balchunas noted that the SEC’s feedback on S-1 filings from issuers was minimal, requesting only minor adjustments. He stated, “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.”
The SEC’s quick turnaround on these comments suggests a likelihood that the applications could be finalized before the upcoming holiday weekend. Balchunas added, “Anything is possible, but this is our best guess as of now.”
This optimism is echoed by Nate Geraci, who believes that the minor nature of the SEC’s comments indicates that substantial groundwork is complete. This significantly reduces the potential for delays, marking a sharp contrast to earlier statements from SEC Chairman Gary Gensler. During a Senate hearing on June 13, Gensler mentioned that Ethereum ETF approvals might occur over the summer but did not specify a date.
If these ETFs are approved, they would allow investors to gain exposure to Ethereum through a traditional investment vehicle. Proponents argue that these instruments will enhance market access for investors and accelerate institutional adoption of Ethereum, mirroring the impact of Bitcoin ETFs.
Despite the enthusiasm, there are concerns about the potential demand for Ethereum ETFs compared to Bitcoin ETFs. One key difference is the absence of staking capabilities in Ethereum ETFs, which some Bitcoin ETFs offer. This could potentially reduce investor interest. However, Geraci believes that the demand for these ETFs is likely underestimated, suggesting that the market may be more receptive than some analysts predict.
The launch of Ethereum ETFs appears imminent, with a potential start date as early as July 2. This development could significantly impact Ethereum’s market dynamics, possibly propelling its price toward new highs. As the crypto community eagerly awaits the SEC’s final decision, the excitement is palpable, with many speculating that ETH could soar to $6,000 or beyond.
