Analyst predicts Ethereum ETFs may launch in July

Exciting news from Bloomberg analyst Eric Balchunas! He predicts that spot Ether (ETH) exchange-traded funds (ETFs) will hit the U.S. market in July.

Balchunas has updated his forecast, now setting the over/under date for the official launch of spot Ether ETFs on July 2.

The expert in crypto mentions that the U.S. Securities and Exchange Commission (SEC) staff has given issuers feedback on the S-1 filings, describing them as having “pretty light” issues without major concerns.

There’s a week for responses to be submitted, leading to a decent chance that the ETFs could be deemed effective the following week, possibly before the “holiday weekend.”

While he notes that anything can happen, this is the current best estimate.

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

SEC Chairman Gary Gensler recently provided clarity on ETH ETFs during his testimony, hinting at approval of the S-1 filings for spot Ethereum ETFs by the summer’s end.

This information strengthens the expectation of approval in the coming months despite potential delays.

Balchunas also mentioned that the issuers are awaiting feedback from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings submitted two weeks ago.

This delay is due to Corp Fin reviewing the documents for the first time, possibly caused by a sudden political shift within the SEC.

There is uncertainty around how quickly Corp Fin can prioritize and process the filings.

Despite this, some believe Ethereum ETFs might not garner as much attention as Bitcoin ETFs because they lack staking capabilities.

SEC Commissioner Hester Peirce expressed doubt about the SEC’s treatment of Ethereum, citing historical security categorization of Ethereum compared to Bitcoin as a commodity.

Peirce emphasized the challenges associated with Ether being classified as a security.

Exploring the Journey of Ethereum ETFs

The SEC has taken steps towards approving Ethereum exchange-traded funds (ETFs), bringing a significant development to the crypto industry.

Approval of eight 19b-4 filings initiated the process, enabling the listing and trading of new securities pending S-1 registration statement approvals.

This progress signals a substantial advancement in the approval process for Ethereum ETFs, eagerly awaited by the crypto community.

Simultaneously, the SEC reviews S-1 registration statements filed by Ethereum ETF issuers, providing detailed information about the companies and securities planned for offering.

As of now, Ethereum (ETH) is priced at around $3,562.97, showing a 2.5% rise in the last 24 hours, though down by 3.5% weekly according to CoinGecko.