Ethereum Spot ETF Set to Launch on July 23, Predicts Analyst
Ethereum is on track to have its own Exchange Traded Fund (ETF) as the Securities and Exchange Commission (SEC) is in the final stages of reviewing applications, with a proposed launch date of July 23, according to Bloomberg analyst Eric Balchunas. Balchunas shared that the SEC has requested the final documents from applicants, indicating a potential launch next week, barring any unforeseen issues.
This development follows a prediction by Nate Geraci, co-founder of the ETF Institute, who anticipated that this week could mark the approval of an ETH ETF. The SEC’s move comes shortly after the regulatory body granted approval to applicants in a significant decision on May 23.
The news of the impending ETF has already had a positive impact on Ethereum’s value, with the cryptocurrency experiencing a 7% surge to $3,416, marking a 14% increase over the past two weeks. Market analysts speculate that if Ethereum follows a similar trajectory to Bitcoin, which saw a surge to new all-time highs following the approval of a spot Bitcoin ETF, ETH could potentially reach its previous peak of $4,840 in a relatively short period.
The SEC is currently reviewing applications from eight entities for an Ethereum ETF, demonstrating a faster pace compared to the lengthy process that led to the approval of a spot Bitcoin ETF. Among the applicants are well-known names such as Grayscale, Bitwise, BlackRock, VanEck, ARK 21Shares, Invesco Galaxy, Fidelity, and Templeton Franklin.
Market observers suggest that the entry of these entities into the Ethereum ETF market may impact prices, as investors will have the option to trade their shares on the open market, similar to the scenario witnessed with Bitcoin. Notably, BlackRock, Grayscale, and Fidelity collectively hold over 90% of the Bitcoin ETF sector, with approximately 763,343 BTC or $48.5 billion under their management.
The impending approval of an Ethereum ETF signals a significant milestone for the cryptocurrency market, potentially opening up new avenues for investors to participate in Ethereum’s growth and further solidifying its position in the digital asset landscape.
