ETFs
Ethereum Spot ETFs to Debut in July – Here’s the Date
Following the approval In the case of spot Ethereum ETFs (exchange-traded funds), potential issuers had to wait for the commercial debut of their products. This has led to a lot of commentary and speculation about when the final approvals for Ether ETFs might be.
Bloomberg analyst Eric Balchunas is the latest personality to predict when Ethereum spot ETFs could begin trading in the United States.
Why Ethereum Spot ETFs Could Start Trading by July 2
In a recent post on the platform, Balchunas put forward July 2, 2024 as the new projected date for which Ethereum spot exchange-traded funds could begin trading. This update is based on the Securities and Exchange Commission’s (SEC) response to issuers on Friday, June 14.
According to the ETF expert, the SEC has made “fairly light” comments on issuers’ S-1 forms, with no major issues to resolve. Balchunas also mentioned that the commission expects issuers to respond to these comments within a week.
The SEC approved Forms 19b-4 for eight potential issuers, including BlackRock, Fidelity, VanEck and Franklin Templeton. The agency should also green light for S-1 forms for Ethereum spot ETFs to go live.
Balchunas wrote in his article on X:
Good luck as they work to declare them effective next week and get them off their plate before the bank holiday weekend. Anything is possible, but that’s our best guess for now.
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Note: our previous over/under was July 4th, so it’s not a major change, but 1) we started to feel like it would take longer, so that’s pretty good news and b ) we basically decide the over/under where the most torn ones are. 50-50 on where to bet and July 2 is that date right now.
– Eric Balchunas (@EricBalchunas) June 14, 2024
Recently, the chairman of the SEC Gary Gensler said to senators during a budget hearing that final approvals for Ethereum spot ETFs should be completed by summer. The final launch of these products is expected to attract significant capital inflows to the second largest cryptocurrency and the market.
Ethereum Demand Is Rising Ahead of ETF Launch
The latest on-chain data shows that there has been a increased demand for Ethereum, particularly from permanent investors. This revelation is based on a significant spike in CryptoQuant’s permanent holder inflow measurement.
Permanent holders, or hodlers, refer to participants who can choose to hold a cryptocurrency for longer periods of time and will not be easily withdrawn due to market volatility. According to the on-chain analytics company, this class of investors picked up 298,000 BTC on Wednesday June 12.
Given the amount acquired by permanent holders, it is likely that institutions are responsible for this acquisition as they attempt to position themselves well in the market ahead of the imminent launch of Ethereum spot ETFs.
ETH price approaching $3,600 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image of Bernard Marr, chart by TradingView