ETFs
Analyst pushes back Ethereum ETF launch to week of July 8
The wait for spot Ethereum Exchange Traded Funds (ETFs) to launch in the United States by July 2 has been thwarted. New information indicates that 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 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, very slight changes) and from what I hear, next week is dead due to the holidays. [By] July 8 the process [will] resume and soon after they will launch,” Balchunas declared.
Industry experts had initially predicted that the regulator could approve the funds tied to ETH spot price before July 4th. They were based on Filing by VanEck of a 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 certain shortcomings by the candidates could be the cause of this 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 eventually International crypto markets and funds are an indication of this, we expect ETH etf flows to represent 20-50% of Bitcoin ETF flows. With $15 billion in net inflows into Bitcoin ETFs to date, our estimated range implies that eth ETFs could see nearly $1 billion in monthly inflows over the first 5 months,” Yu noted.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
Estimated ETH ETF Inflows. Source : Digital Galaxy
According to these projections, the funds could attract more than $11 billion in their first year of operation. Matthew Houang, Bitwise’s chief investment officer, shares a similar view, forecasting $15 billion in capital inflows in the first 18 months.
However, Yu also highlighted potential factors that could affect ETF demand. These include the lack of stakingthe progress of Grayscale’s ETHE and the funding rate of Ethereum ETFs.
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