Spot ETH ETFs expected to be launched in June, according to Bloomberg analyst.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, spot Ethereum ETFs could potentially be launched by late June. This prediction comes after BlackRock recently made amendments to its Form S-1 filing for the iShares Ethereum Trust, which was submitted to the Securities and Exchange Commission (SEC) on May 29. The SEC had previously approved BlackRock’s 19b-4 filing, which are both crucial steps for the ETF to begin trading. Balchunas expressed optimism about the development, stating that it is a good sign and that other ETFs could follow suit soon. He believes that there may be another round of fine-tuning SEC comments, but he considers an end of June launch to be a legitimate possibility. However, he still maintains that the odds of approval are more likely around July 4, with an earlier approval being unlikely. James Seyffart, another ETF analyst at Bloomberg, echoed Balchunas’ sentiments, suggesting that BlackRock’s updated S-1 filing indicates progress towards the launch of spot Ethereum ETFs. BlackRock’s amended S-1 also revealed details about its seed capital investor, who will fund the ETF’s initial trading activities. On May 21, a BlackRock affiliate firm acting as the seed capital investor agreed to purchase $10,000,000 worth of shares at a price of $25.00 per share. The ETF will be listed and traded under the ticker “ETHA.” On the same day, Hashdex withdrew its bid for a spot Ether ETF, despite receiving approval from the SEC alongside BlackRock and seven other issuers. Analysts predict that these ETFs will drive the price of Ethereum to new highs, with some speculating that Wall Street will use them as a way to bet on the growth of web3. Sumit Gupta, Co-founder of CoinDCX, believes that the SEC’s approval of spot Ether ETFs is a significant moment for the crypto industry. He stated that it will contribute to the mainstream adoption of digital assets and reflect a maturing regulatory environment. He also pointed out that Bitcoin experienced a significant rally after the launch of its ETF, and a spot Ether ETF could potentially drive a similar rally of up to 60% for Ethereum. However, some analysts believe that Ethereum could face price pressure as the Grayscale Ethereum Trust (ETHE) may experience daily outflows of $110 million for several weeks after its conversion and discount narrowing.
