Bloomberg ETF analysts have revised their expectations, predicting that the launch date for the first Spot Ether ETF could be as soon as July 2nd. This update follows reports of the SEC providing responses to S-1 filings from ETF issuers.
SEC Feedback and Approval Timeline
Eric Balchunas, a Bloomberg ETF analyst, noted that the SEC’s comments on the S-1 forms have been relatively minor, requiring only light revisions. The SEC has requested these revisions to be returned within a week, suggesting a quick turnaround. Balchunas believes there is a “decent chance” that the SEC will declare these filings effective the following week, potentially finalizing approvals before the Independence Day holiday weekend.
This timeline is much sooner than the September approval date recently mentioned by SEC Chair Gary Gensler. Earlier this week, Gensler indicated that the regulator should fully approve Spot Ether ETFs by September. The recent movement in SEC feedback suggests a faster-than-expected approval process.
Background and Market Impact
The first round of Spot Ethereum ETF approvals came at the end of May 2024, surprising the digital asset market. The SEC had previously resisted approving crypto-based exchange-traded products, even after the success of a Spot Bitcoin ETF, which was approved in January.
With the approval of Ethereum ETF 19b-4 forms, issuers are now awaiting the final approval of their S-1 forms. These forms are essential for publicly offering new securities. The prompt review and feedback from the SEC have fueled optimism about a potential July 2nd launch.
Also Read: SEC Considers Spot Ether ETF Application from ProShares
Market Implications
Should the SEC approve the Spot Ether ETFs by early July, Ethereum is expected to experience significant price increases, similar to the surge seen in Bitcoin following its ETF approval. At the time of writing, Ethereum is trading at over $3,500. Analysts predict that with ETF approval, Ethereum’s price could soar to new all-time highs, with some forecasts suggesting it could reach between $5,000 and $10,000 this summer.
The potential early approval of Spot Ether ETFs by the SEC marks a significant milestone for Ethereum and the broader crypto market. The expedited review process and minor feedback on S-1 forms indicate a strong possibility of seeing these ETFs launch by July 2nd. This development is likely to drive substantial market activity and price increases for Ethereum in the coming months.
