Ethereum
Analyst pushes back Ethereum ETF launch to week of July 8
Expectations for Ethereum spot ETFs (Exchange Traded Funds) to launch in the United States by July 2 have been derailed, with new reports suggesting the launch could be delayed until the week of July 8.
Bloomberg analyst Eric Balchunas made the revelation on social media platform X while explaining why Ethereum ETFs may not start trading anytime soon.
This week, the U.S. Securities and Exchange Commission (SEC) returned S-1 forms to potential Ethereum ETF issuers. Balchunas mentioned that the forms were returned with minimal feedback. However, issuers may have to wait until the end of the holidays next week to proceed.
“Unfortunately, I think we have to postpone our over/under until after the holidays. It seems like the SEC took longer to respond to people this week (although again, these are very slight edits) and from what I’ve heard, next week is dead because holidays. [By] July 8th the process [will] resume and shortly after they will launch,” Balchunas declared.
Industry experts had initially predicted that the regulator could approve the funds linked to the spot price of ETH before July 4. They were based on VanEck Submission of Form 8-A for its Ethereum ETF, suggesting an imminent trade.
Learn more: Ethereum ETF explained: what it is and how it works
However, the Bloomberg analyst suggested that some failures by the candidates may have caused the new delay.
“[The] The best theory is that not all issuers were as strict with their documents, so one or two of them may have slowed down the process. Or just summer schedules/staff laziness,” Balchunas said. added.
Despite the delay, market experts believe the funds could attract significant investment once trading begins. Charles Yu, vice president of research at Galaxy Digital, speculated that ETH ETF could see up to $1 billion in monthly inflows in the first five months.
“If future “If data from international stock markets and crypto funds are to be believed, ETH ETF flows are expected to account for 20-50% of Bitcoin ETF flows. With $15 billion in net inflows into Bitcoin ETFs to date, our estimate range implies that ETH ETFs could see nearly $1 billion in monthly inflows over the first five months,” noted Yu.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
Estimated ETH ETF Inflows. Source: Digital Galaxy
This projection indicates that the funds could attract more than $11 billion in their first year of trading. Matthew Houang, CIO of Bitwise, shares a similar view, forecasting inflows of $15 billion in the first 18 months.
However, Yu also highlighted potential factors that could affect ETF demand. These include the lack of stakingGrayscale’s ETHE settlement and Ethereum ETF funding rate.
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