In a nutshell:
- Bloomberg senior ETF analyst Eric Balchunas believes spot-based Ethereum exchange-traded funds (ETFs) could begin trading by July 2.
- This comes after the SEC issued a few comments on the S-1 filings for these ETFs, signaling a quick clearance process.
- Stakeholders believe that this launch will improve market access and institutional adoption for Ethereum and the whole sector.
Bloomberg senior ETF analyst Eric Balchunas predicts that spot Ethereum exchange-traded funds (ETFs) might begin trading as early as next month.
Why Ethereum Spot ETFs Could Start Trading By July 2
According to a post made by Balchunas on the X platform, the revised estimated start date for trading spot Ethereum exchange-traded funds is July 2, 2024. The feedback provided by the Securities and Exchange Commission (SEC) to issuers on Friday, June 14, formed the basis for this update.
The ETF expert claims that the SEC made “fairly mild” comments on the issuer’s’ S-1 forms with no significant problems. According to the commission, Balchunas also said that issuers are expected to respond to these comments within a week.
The 19b-4 forms for eight potential issuers, including Blackrock, Fidelity, VanEck, and Franklin Templeton, have been accepted by the SEC. For the Ethereum spot ETF to go live, the agency must also approve the S-1 form. During the budget session, SEC chief Gary Gensler informed senators that the final approval of Ethereum spot ETFs should be completed by the summer. The last dispatch of these items is anticipated to see a tremendous influx of capital into the second-largest cryptocurrency and the market.
The appetite for Ethereum is rising ahead of the ETF launch
According to the most recent on-chain data, interest in Ethereum has increased, especially among long-term investors. This information was made public based on a significant increase in CryptoQuant’s permanent holders flow indicator.
Permanent holders, often known as holders, are people who can choose to keep a cryptocurrency for an extended period of time and are unlikely to be wiped out by market volatility. According to the on-chain analytics firm, this gather of speculators procured 298,000 BTC on Wednesday, June 12.
Given the volume received by permanent holders, institutions have likely made this purchase in an attempt to gain a competitive edge ahead of the upcoming launch of the Ethereum spot ETF.
