As major issuers update their S-1 documents, market expectations for the approval of the Ethereum spot ETF before July 18 have increased significantly. This development not only includes updated filings from BlackRock and others, but Bloomberg analysts also predict that final approval of these ETFs may be imminent. Affected by this, the price of Ethereum has risen by more than 5% in the past 24 hours.
Although some potential issuers such as Grayscale and 21Shares have not disclosed fee details in their update documents, and the Invesco Galaxy Ethereum ETF has not yet submitted an S-1 form update, ETF Store President Nate Geraci expects that Invesco Galaxy's update will be made public soon.
Meanwhile, Bitwise also updated its S-1 filing, announcing a six-month fee waiver program of up to $500 million, however, Bitwise’s form did not specify an exact release date. The company only said that this would happen “as soon as possible” after the registration effective date.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, commented on the recent application. He said that the SEC has required the S-1 filing to be completed by July 8, but issuers do not need to pay fees at present, and it is expected that the SEC will provide further guidance soon. He said on social media X that although there is no exact date, he personally speculated that July 18 may be the key date.
With the listing imminent, market excitement coexists with concerns about volatility
Initially, Bloomberg Industry Research analysts gave an expectation that these ETFs may be officially listed later next week or the week of July 15. However, due to the uncertainty of the approval process of the U.S. Securities and Exchange Commission (SEC), an exact listing timetable cannot be determined at present. This means that although the analysts gave a predicted time range, the final listing date still needs to wait for the approval result of the SEC.
In addition, industry experts believe that the approval of the spot Ethereum ETF will be a turning point for the market, providing institutional investors with a compliant and convenient way to invest in Ethereum, which is expected to increase market demand and liquidity. Matteo Greco, a research analyst at Fineqia, is also optimistic about this trend, believing that it shows that traditional financial service providers and investors are increasingly interested in digital assets, which indicates a positive outlook for the digital asset market.
However, Shubh Varma, co-founder and CEO of Hyblock Capital, warned that the anticipation for these ETFs could lead to increased market volatility, noting that the rise in the Deribit Bitcoin Volatility Index (DVOL) reflects the market’s expectations for future price volatility.
Despite volatility concerns, the market has reacted positively to these developments, with the rise in Ethereum prices reflecting market optimism about the approval of an Ethereum spot ETF.
Eagerly awaited, Ethereum ETF listing prospects are full of concerns
With the S-1 filing for the spot Ethereum ETF, the move is seen as an important step in the approval process. The SEC has already approved the 19b-4 form, which is also a prerequisite for the ETF to begin trading.
Industry experts generally believe that the approval of a spot Ethereum ETF will be a turning point in the cryptocurrency market. It will provide institutional investors with a regulated and easy-to-operate investment channel and may also significantly increase Ethereum's demand and market liquidity.
At the same time, Matteo Greco, an analyst at Fineqia, also holds an optimistic view, pointing out that the applications for the new Ethereum ETF and Solana ETF reflect the growing interest in digital assets in the traditional financial sector. Greco believes that this trend indicates a positive outlook for the digital asset market in the medium and long term, indicating that the infrastructure of the financial market will continue to strengthen, and capital inflows, liquidity and transparency will also increase accordingly.
However, Shubh Varma, co-founder and CEO of Hyblock Capital, raised concerns about the volatility these ETFs are expected to cause, noting that this has been foreshadowed by a rise in the Deribit Bitcoin Volatility Index (DVOL), an indicator that predicts price movements over the next 30 days based on options data.
Varma explained that with the rise in DVOL and the rapid decline in Ethereum prices, liquidity in the spot market is decreasing. This indicates that many traders and investors are choosing to wait and see, reducing market activity, which in turn leads to a widening of the bid-ask spread and price instability.
Despite these concerns, the market has reacted positively to these developments. As of now, Ethereum (ETH) is trading at $3,068, up more than 5% in the past 24 hours, showing the market's optimistic expectations for the listing of an Ethereum ETF.
Conclusion:
The progress of the approval of Ethereum spot ETFs, despite the volatility concerns, has aroused great interest in the market due to the positive response of investors. This reflects the market's long-term confidence in cryptocurrencies, especially Ethereum as an investment asset. With the continuous innovation of financial products and the gradual clarification of the regulatory environment, we are expected to usher in a more stable and standardized cryptocurrency investment environment.
Ultimately, regardless of whether the Ethereum ETF can be listed within the expected time, its impact on the market has already emerged. These positive developments indicate that the cryptocurrency market will continue to attract more attention and capital inflows, while also providing new opportunities for investors, thereby driving the entire industry forward.
