Exchange-Traded Fund (ETF) experts remain optimistic about a potential mid-July launch for a spot Ethereum(ETH)ETF, but this hope isn’t reflected in the price of Ethereum itself, which has dipped again. Asset managers are confident that the US Securities and Exchange Commission (SEC) will finally approve the first US ETFs directly tied to Ethereum, possibly as soon as mid-July.
SEC Approval Process Nears Completion
The SEC has requested updated paperwork and amended S-1 filings from ETF applicants by July 8th. There might be additional rounds of filings needed after this initial deadline according to sources familiar with the process, as reported by Bloomberg. These recent inquiries from the SEC reportedly involved minor questions that are currently being addressed by the issuers.
Industry Leaders Anticipate Approval
Steve Kurz, Head of Asset Management at Galaxy Digital, expressed confidence in an Ether ETF being approved within the next few weeks. He downplayed the recent SEC requests, highlighting the established communication between the Commission and issuers. “We’ve been doing this for months now,” Kurz said, referencing the approval process for the Bitcoin ETF.
Major Players in the Running
Financial giants like BlackRock, Fidelity, Ark 21Shares, and Invesco all have pending filings for Ethereum ETFs. However, a key step before launch, disclosing fund fees, remains outstanding for many issuers.
Investor Demand for Ethereum ETFs Uncertain
Whether Ethereum ETFs will mirror the success of spot Bitcoin ETFs, which have garnered over $52 billion in assets since their January launch, remains to be seen. Analysts predict that Ethereum ETF inflows could be significantly lower, ranging from 10% to 15% of Bitcoin ETF flows. Some even anticipate a price drop of up to 30% for ETH following the launch.
Bullish Outlook for Ethereum Despite Price Dip
Crypto research firm K33 Research stands out with a bullish prediction for Ethereum, expecting it to outperform Bitcoin in July. “ETFs will act as a catalyst for Ethereum’s relative strength,” wrote K33 senior analyst Vetle Lunde, attributing the potential price increase to summer inflows. Lunde views current market conditions as an “opportunity” for investors with a long-term view.
Also Read: Ethereum To Moon? Analyst Predicts ETH Outperformance vs. Bitcoin After US ETF Launch
Bitcoin Faces Additional Selling Pressure
Bitcoin could face additional downward pressure due to an upcoming distribution of nearly $9 billion worth of BTC linked to the defunct Mt. Gox exchange.
Ethereum Price Retreats
Ethereum prices are currently not reflecting the optimism surrounding the ETF launch. The price dipped 3% to an intraday low of $3,342 during Asian trading on Wednesday. This follows a brief surge to a ten-day high of $3,500 earlier in the week, mirroring the broader crypto market’s struggle to break resistance levels. Ethereum is currently trading 17% below its 2024 peak and a significant 31% down from its all-time high in November 2021.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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