Ethereum
Why Ethereum ETFs Could Launch on July 2
Eric Balchunas, senior ETF analyst at Bloomberg, predicted that Ethereum spot exchange-traded funds (ETFs) could begin trading as soon as next month.
Balchunas revised his previous estimate, moving the potential launch date from July 4 to July 2.
Why Ethereum ETFs Could Start Trading in July
According to Eric Balchunas, staff at the U.S. Securities and Exchange Commission (SEC) made “fairly light-hearted” comments on the S-1. deposits for Ethereum spot ETFs. The SEC has requested additional adjustments to these applications, which are expected to be submitted within a week.
“We are moving our plus/minus date for the Spot Ether ETF launch to July 2, after hearing from staff sending feedback to issuers on the S-1s. [on June 14]and they are rather light, nothing serious, I ask for them in a week”, Balchunas declared.
Balchunas speculated that the SEC could finalize these requests before the holiday weekend. “Anything is possible, but this is our best guess at the moment,” he added.
Nate Geraci, president of ETF Store, noted that the update made sense given the minor nature of the SEC’s comments. This suggests that the substantial work has already been completed, leaving no reason for further delay.
Learn more: Ethereum ETF explained: what it is and how it works
This development suggests that Ethereum ETF could launch sooner than SEC Chairman Gary Gensler indicated. On June 13, during a Senate Appropriations Committee budget hearing, Gensler mentioned that Ethereum ETF could receive approval over the summer, but has not specified a timetable for its commercial debut.
These financial instruments will allow investors to trade funds that hold the second largest digital asset in terms of market capitalization. Stakeholders believe the move will improve market access for the crypto industry and boost institutional adoption, similar to the impact of Bitcoin ETF.
However, some stakeholders believe that Ethereum ETFs may not attract as much interest as Bitcoin ETFs due to the lack of staking capabilities. Regardless, Geraci says many underestimate the potential demand for these products.
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