Bloomberg analyst predicts June launch date for spot ETH ETFs

As a researcher with a background in financial markets and experience following the ETF industry, I find Eric Balchunas’ prediction on the launch of spot Ethereum ETFs by late June to be an encouraging sign. The update from BlackRock regarding its Form S-1 filing for the iShares Ethereum Trust, which came shortly after the SEC approved their 19b-4 filing, is a significant step towards the commencement of trading.

According to Eric Balchunas, a senior analyst at Bloomberg ETF, there’s a strong possibility that spot Ethereum Exchange-Traded Funds (ETFs) will be introduced in the market as early as late June.

As an analyst, I’ve reviewed the most recent investment outlook based on BlackRock’s updated Form S-1 submission to the SEC on May 29th for the iShares Ethereum Trust.

Approximately a week after the SEC gave its approval to BlackRock’s 19b-4 filing, which was a necessary step, the ETF began trading.

“Good sign. [Probably] see rest roll in soon,” Balchunas stated in a May 29 X post.

According to Balchunas, there’s a chance that the SEC may make further adjustments to their comments before making a final decision. He believes it’s plausible that this could occur by the end of June. However, his personal prediction for the approval date remains around July 4th. An earlier approval, he added, would be quite unlikely.

Positive development. The remaining parts are likely to follow suit shortly. Further adjustments from the team might be required. A launch before the end of June is plausible, though I’m sticking with my original prediction of a July 4th release.

— Eric Balchunas (@EricBalchunas) May 29, 2024

James Seyffart of Bloomberg, like Balchunas, expressed agreement and noted that BlackRock’s revised S-1 filing signifies substantial interaction between companies and the Securities and Exchange Commission (SEC), implying advancement towards Ethereum ETF approvals.

BlackRock’s revised S-1 disclosed information regarding the entity that finances the initial trading operations for its ETF, which is referred to as its seed capital investor.

On May 21st, a BlackRock affiliate functioned as the seed investor by purchasing $10 million worth of shares for approximately 400,000 units at a price of $25 each, based on the filing’s information.

The ETF will list and trade under the ticker “ETHA.”

I analyzed the events of that day and discovered that Hashdex, just like me, decided to withdraw its application for an Ether Exchange-Traded Fund (ETF) with a spot price, even though the Securities and Exchange Commission (SEC) had approved it, alongside BlackRock and seven other issuers.

As a crypto investor, I’m excited about the potential impact of these Ethereum-based Exchange Traded Funds (ETFs) on the price of Ethereum (ETH). According to analysts, these ETFs could be a game-changer, potentially driving ETH to new heights. Some even speculate that Wall Street may use these funds as a way to bet on the growth of web3 technology. Essentially, these financial instruments provide another avenue for institutional investors to gain exposure to Ethereum and the broader decentralized finance (DeFi) ecosystem, which could lead to increased demand and higher prices.

“The SEC’s approval of Ether ETFs in the US marks a groundbreaking milestone for the cryptocurrency sector. This development follows the achievements of Bitcoin ETFs and provides investors with a secure and regulated means to invest in Ether. The increased acceptance will accelerate mainstream adoption and symbolize a maturing regulatory landscape, paving the way for more legitimization of the digital asset class as a whole,” Sumit Gupta, CoinDCX co-founder, previously commented to crypto news.

In the two-week period following the commencement of trading for the Bitcoin ETF on January 11, its price surged from $42,000 to over $73,000. Likewise, it’s expected that the approval and subsequent trading of an Ethereum spot ETF could potentially lead to a 60% increase in Ethereum’s value.

As a researcher studying the cryptocurrency market, I’ve come across some intriguing insights regarding Ethereum (ETH). Some analysts hypothesize that ETH could encounter price pressure following the potential conversion of the Grayscale Ethereum Trust (ETHE), which might result in an average daily outflow of approximately $110 million for several weeks. This could narrow the discount between ETHE and ETH, potentially impacting the Ethereum market.

Read More

2024-05-30 13:49