Analyst Predicts Ethereum ETF Launch In Early July

According to Bloomberg ETF analyst Eric Balchunas, the highly anticipated spot Ethereum ETH/USD ETF might launch as early as July 2. This prediction follows reported comments from the Securities and Exchange Commission (SEC) staff on the issuers’ S-1 filings. The SEC requested revisions within a week, indicating a potential swift approval process.

In a June 14 post on X, Balchunas noted, “Decent chance they work to declare them effective the next week and get it off their plate before the holiday weekend. Anything is possible but this is our best guess as of now.”

UPDATE: we are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they're pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next… https://t.co/XJZ8JLwEFF

— Eric Balchunas (@EricBalchunas) June 14, 2024

Issuers eagerly awaited feedback from the SEC's Corporation Finance (Corp Fin) division, which received the filings two weeks ago. The review was delayed due to a last-minute shift in priorities, likely influenced by political factors. SEC Chair Gary Gensler previously suggested that approvals could come "over the course of this summer," while Sen. Bill Hagerty (R-TN) indicated a timeline by the "end of the summer."

Market Movements and Investor Sentiment

The digital asset market has been experiencing notable shifts recently. According to CoinShares, the market saw weekly outflows totaling $600 million in mid-June, marking the largest outflow since March 2024. This was primarily driven by a hawkish Federal Open Market Committee (FOMC) meeting, prompting investors to reduce exposure to fixed-supply assets like Bitcoin.

Bitcoin alone witnessed weekly outflows of $621 million in mid-June, whereas Ethereum, Lido, and XRP saw inflows of $13 million, $2 million, and $1 million, respectively.

Potential Impact On The Digital Asset Market

Adjusting the Ether ETF launch date could be a new catalyst for market dynamics, potentially influencing investor behavior and market sentiment. The anticipation surrounding the launch highlights the increasing integration of digital assets into mainstream financial products and the evolving regulatory framework.

Balchunas emphasized the importance of this development, noting, "This is ground-breaking stuff," about the SEC's progress on diverse financial products to mitigate risks and enhance exposure to digital assets.

Where To Learn More

For those looking to delve deeper into the implications of the Ethereum ETF launch and broader trends in the digital asset market, Benzinga is hosting its Future of Digital Assets event on Nov. 19 in New York City. This one-day event will bring together over 1,000 leaders from the digital asset industry and institutional investors, offering a unique opportunity to gain firsthand insights from experts and industry pioneers.

The event promises a comprehensive networking experience, with 4,000 one-on-one meetings to connect decision-makers, investors, and strategists. This event explores the future of money and the expanding field of alternative asset classes, providing a platform for significant discussions and deal-making opportunities.

As the launch date for the spot Ethereum ETF approaches, the digital asset market is set for major developments. The upcoming Benzinga event will further facilitate crucial discussions and networking opportunities, shaping the future of digital assets and their integration into mainstream finance.

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Image: Ethereum