Ethereum ETF Set to Launch by July 15th, Expected to Absorb Up to 1% of Total ETH Supply

• The highly anticipated spot Ethereum ETF is set to launch soon, pending the approval of the S-1 form.
• Experts predict substantial absorption rates for Ethereum once the ETFs are live.
• Industry analysts forecast Ethereum to outperform Bitcoin in the wake of the ETF approval.

The forthcoming Ethereum ETFs are poised to revolutionize the market, potentially absorbing up to 1% of all ETH within five months.

Launch Date for Spot Ethereum ETFs Approaches

As the cryptocurrency community eagerly anticipates, the spot Ethereum ETF is expected to commence trading shortly after the S-1 form approval, projected for July 12. Nate Geraci, president of The ETF Store, has indicated that trading could begin by mid-July, specifically on July 15.

Industry Leadership Insights

According to Nate Geraci, the SEC’s approval timeline for the revised S-1 forms suggests that Ethereum ETFs could start trading soon. Geraci’s insights provide a significant boost to market sentiments, as investors prepare for the official launch date. The broader crypto community has been keenly watching the regulatory updates, and this development marks a crucial milestone.

SEC and Issuers Address Queries

Issuers received queries from the US SEC regarding the S-1 filings, with minor issues needing resolution. Sources confirm that issuers are actively working to address these questions. In May, the SEC approved the 19b-4 filings to list Ether ETFs on exchanges. However, the actual trading can only commence post-approval of the S-1 submissions.

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Steve Kurz, head of asset management at Galaxy Digital, expressed optimism about the approval timeline, suggesting that the SEC’s engagement in this process is robust. He highlighted the parallels with Bitcoin ETF procedures, indicating a smooth process ahead.

Market Impact and Projections

The potential approval of Ethereum ETFs may act as a significant market catalyst. K33 Research released a report predicting that Ethereum could outperform Bitcoin following the ETF approval. They estimate that Ethereum ETFs will absorb between 0.75% to 1% of all ETH in circulation within the first five months, which aligns with Gemini’s forecast of $5 billion inflows in the initial half-year period.

Vetle Lunde, senior analyst at K33, remarked, “The summer is likely to see relative ETH strength as ETF flows accumulate.” Such projections suggest a favorable outlook for Ethereum’s market position compared to Bitcoin.

Historical ETH/BTC Ratio Trends

The ETH/BTC ratio, which had experienced a decline after the initial Bitcoin ETFs’ launch, saw a resurgence with the news of Ethereum ETF potential approvals. From a low of 0.046, the ratio bounced back to 0.055, reflecting market optimism and renewed investor interest in Ethereum.

Conclusion

With the anticipated launch of Ethereum ETFs, the market stands at the brink of a significant transformation. Investors and industry experts alike await the regulatory approval expected by mid-July, which could substantially impact Ethereum’s market dynamics. As the crypto community prepares for this noteworthy event, the projected absorption rates and anticipated market performance underscore Ethereum’s potential to outshine Bitcoin in the coming months.