Bloomberg ETF analyst Eric Balchunas announced that the industry’s highly anticipated spot Ethereum ETF is expected to start trading on July 2.
According to Balchunas, the U.S. Securities and Exchange Commission (SEC) has sent a brief comment to ETF issuers on the S-1 filing and asked them to respond within a week.
The SEC's move suggests it is likely to announce the ETF as effective next week, allowing related products to begin trading before the holiday weekend.
SEC approval process nears completion
The SEC has approved the 19b-4 forms of eight Ethereum ETF issuers, including BlackRock, Fidelity, and VanEck. However, for the ETF to be officially listed and traded, the SEC must also approve the S-1 form.
SEC Chairman Gary Gensler recently hinted that an Ethereum ETF Form S-1 would likely be approved this summer, a prediction that was confirmed during his Senate Appropriations Committee hearing earlier this week.
Ethereum price expectations and market reaction
Asset management firm VanEck predicts that the price of Ethereum (ETH) could reach $22,000 by 2030, based on expectations that the currency will generate $66 billion in “free cash flow.”
The launch of a spot Ethereum ETF is expected to attract a large amount of institutional capital, with Geoff Kendrick of Standard Chartered Bank estimating that inflows could be between $15 billion and $45 billion in the first year.
QCP Capital, a cryptocurrency trading firm based in Singapore, predicts that the approval of a spot Ethereum ETF could trigger a sharp rise in ETH prices, possibly as much as 60%, similar to the market reaction after the spot Bitcoin ETF was approved in January. #以太坊现货ETF #ETH
Conclusion
As the listing date of the spot Ethereum ETF approaches, the market expects that this financial innovation will bring a new investment boom to Ethereum. The SEC’s approval not only provides investors with new investment avenues, but may also drive a significant increase in the price of Ethereum. The industry is closely watching the SEC’s final decision and its far-reaching impact on the cryptocurrency market.