Spot Ether ETFs May Launch in Mid-June: Bloomberg Analysts

As an experienced ETF analyst, I closely follow the developments in the world of digital asset-backed exchange-traded funds (ETFs). The recent approval of spot Ether ETFs is a significant milestone, and I’m optimistic about their launch around mid-June. Based on historical feedback processes for Bitcoin ETFs, I believe that we might only go through one round of comments on the S-1 registration statements. If this proves to be the case, a mid-June launch is certainly plausible. However, it’s essential to remember that this is just an educated guess and not a definitive prediction.

Approval has been granted for Ether (ETH) exchange-traded funds (ETFs), which are expected to debut around mid-June, contingent upon the Securities and Exchange Commission’s (SEC) approval of their S-1 registration statements prior to trading commencement.

The impasses in our negotiations have been resolved. Now, it’s all about managing the logistics. I assume there will be only one round of comments on the S-1 filings. Previously, during Bitcoin‘s IPO process, this step took roughly two weeks. Therefore, mid-June is a plausible timeline, though it’s just an estimation. We’ll find out for sure soon enough.

— Eric Balchunas (@EricBalchunas) May 23, 2024

Experts at Bloomberg, specifically Eric Balchunas, expect Securities and Exchange Commission (SEC) approvals for Bitcoin ETFs to be granted within a few weeks, with the possibility of an extension lasting up to five months in total. Balchunas further estimates that a mid-June launch could occur following a two-week feedback process for these specific ETF applications.

VanEck quickly submitted an amended S-1 form for SEC approval under Rule 19b-4, with more filings anticipated. However, there are apprehensions regarding possible objections from SEC Commissioners within a ten-day timeframe.

Experts predict that between 10-20% of the funds flowing into Bitcoin Spot ETFs, which amounted to $13.4 billion in net inflows over a four and a half month period, will shift towards Ether Spot ETFs. Consequently, these Ether ETFs could potentially draw in around $2.66 billion.

As a researcher studying the trends in cryptocurrency investments, I’ve noticed some concerns regarding significant withdrawals from Grayscale’s Ethereum Trust, which currently holds approximately $11.3 billion. Among the eight applicants who received regulatory approval to operate in Brazil, Hashdex was the only one not granted the green light.

The market is anxiously looking forward to more information, believing that it will bring substantial changes to the realm of cryptocurrency investments.

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2024-05-24 08:36