- Asset managers are showing a positive outlook on potential SEC approval for the first U.S. ETFs directly investing in Ethereum, targeting mid-July.
- The SEC has set a deadline of July 8 for ETF applicants to submit updated paperwork and amended S-1 filings.
- There may be another round of filings after the submission due on July 8, according to sources cited by Bloomberg.
Optimism is rising as the SEC may greenlight the first U.S. Ethereum ETFs by mid-July, indicating significant progress in crypto finance.
Ethereum ETF Prospects
Recent SEC interactions with issuers have included minor queries that are currently being addressed, enhancing the prospects for approval. Steve Kurz, head of asset management at Galaxy Digital, suggested that an Ether ETF could be greenlit in the upcoming weeks.
“This is window-dressing, the SEC is engaged. We’ve been doing this for months now. We did it for the Bitcoin ETF, the products are substantially similar – we know the plumbing, we know the process.” — Steve Kurz
Leading asset management firms like BlackRock, Fidelity, Ark 21Shares, and Invesco have active filings but have yet to disclose fund fees, a prerequisite before trading can commence. The uncertain market response to Ethereum ETFs compared to spot Bitcoin ETFs, which have amassed $52 billion in assets, remains a topic of discussion.
Market Predictions and Crypto Sentiment
Analysts predict Ethereum ETF flows might represent 10% to 15% of Bitcoin ETF flows, with a potential 30% decline in ETH prices post-launch. However, K33 Research indicates Ethereum could outperform Bitcoin in July, driven by ETF-related investment inflows.
“ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader.” — Vetle Lunde, K33 senior analyst
Meanwhile, Bitcoin faces potential downward pressure from an anticipated distribution of nearly $9 billion in BTC from the defunct Mt. Gox exchange.
ETH Price Fluctuations
Ethereum’s price lacks upward momentum, falling 3% to an intraday low of $3,342 during Wednesday’s Asian trading session. The asset recently peaked at $3,500 within a ten-day high but mirrored Bitcoin’s struggle to overcome resistance levels, causing a retreat.
Currently, Ethereum is down 17% from its 2024 peak of just over $4,000 and 31% below its November 2021 all-time high.
Conclusion
In summary, the potential mid-July approval of U.S.-based Ethereum ETFs represents a pivotal moment for crypto markets. While some analysts predict a shift in ETH prices, the overall sentiment remains positive, especially among institutional investors anticipating new opportunities. The evolving regulatory landscape and ETF launches could significantly influence Ethereum’s market performance in the coming months.
