Ethereum Spot ETFs To Make Trading Debut In July – Here’s The Date

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As a researcher with a background in cryptocurrencies and exchange-traded funds, I find the recent developments regarding the Ethereum spot ETFs particularly intriguing. The potential approval of these products has been a topic of much discussion and speculation within the industry, and the latest prediction by Bloomberg analyst Eric Balchunas that they could begin trading as early as July 2, 2024, is worth paying attention to.

After the green light for Ethereum-based spot ETFs (exchange-traded funds) was given, prospective issuers have been kept in a holding pattern, eagerly anticipating the market debuts of their offerings. This delay has ignited considerable discussion and conjecture regarding the potential timeline for regulatory approvals of Ethereum ETFs.

Expert note: Eric Balchunas, an analyst at Bloomberg, has shared his insights on the potential timeline for the debut of Ethereum-backed spot exchange-traded funds (ETFs) in the US financial market.

Why Ethereum Spot ETFs May Start Trading By July 2

As a crypto investor following the X platform, I’m excited about Balchunas’ latest prediction that spot Ethereum exchange-traded funds might start trading by July 2, 2024. This update stems from the SEC’s recent response to issuers on June 14.

As a researcher studying Exchange-Traded Funds (ETFs) and their regulatory environment, I’ve observed that the Securities and Exchange Commission (SEC) made relatively mild remarks on the S-1 forms submitted by ETF issuers. These comments did not raise significant concerns or major issues that need immediate attention. The SEC anticipates a response from issuers within a week to address these comments.

The Securities and Exchange Commission (SEC) has given its approval for the 19b-4 forms of eight prospective issuers, including BlackRock, Fidelity, VanEck, and Franklin Templeton. However, it’s important to note that the SEC still needs to authorize the S-1 forms before Ethereum spot ETFs can officially commence operations.

Balchunas wrote in his post on X:

There’s a good probability that we can make an declaration of their effectiveness by the coming week, allowing us to conclude the matter before the upcoming holiday weekend. However, it’s essential to keep in mind that unforeseen circumstances may arise, and this is currently our most reasonable prediction.

As a crypto investor, I’ve been keeping a close eye on our previous prediction of Bitcoin reaching a certain price point by July 4th. However, recently, my gut feeling has been telling me that we might need more time for the market to develop. This new development, with the date being moved to July 2nd instead, brings a sense of relief as it aligns with my current perspective. Essentially, the over/under price point we’ve identified is where we’re most uncertain and indecisive about placing our bets, making July 2nd the significant date for us right now.

— Eric Balchunas (@EricBalchunas) June 14, 2024

During a recent budget hearing, SEC Chairman Gary Gensler indicated to senators that the approval process for Ethereum spot ETFs is likely to be completed by summer. Upon their launch, these products are anticipated to draw substantial investment into Ethereum and the wider cryptocurrency market.

Ethereum Demand On The Rise Ahead Of ETF Launch

Based on the most recent on-chain analysis, there’s been a surge in demand for Ethereum, primarily driven by long-term investors. This insight stems from a notable increase in CryptoQuant’s Permanent Holders Inflows indicator.

Individuals referred to as “long-term holders” or “hodlers” in cryptocurrency circles are those who opt to keep a particular digital asset for extended periods and remain unfazed by market fluctuations. As reported by the analytics company based on blockchain data, approximately 298,000 Bitcoin were acquired by this investor group on June 12, 2023.

As a market analyst, I would hypothesise that given the substantial quantity of Ethereum being amassed, it’s plausible that institutions are behind these acquisitions. Their objective is to strategically prepare for the upcoming launch of Ethereum spot Exchange-Traded Funds (ETFs), aiming to secure advantageous market positions beforehand.

Ethereum Spot ETFs To Make Trading Debut In July – Here’s The Date

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2024-06-15 12:56