Ethereum Spot ETFs Advancing as SEC Targets July 23 Launch
The Securities and Exchange Commission (SEC) has requested issuers to submit their final S-1 forms by Wednesday in preparation for the potential launch of Ethereum spot exchange-traded funds (ETFs) on July 23. This move involves major asset managers like BlackRock and VanEck.
According to Eric Balchunas, a Senior ETF Analyst at Bloomberg, the SEC’s request for final S-1 forms by Wednesday signals a significant step towards the launch of Ethereum ETFs. If all goes smoothly, the request for effectiveness will be submitted after Monday’s closure, setting the stage for a potential launch on July 23. This development aligns with earlier forecasts made by Nate Geraci, the President of the ETF Store, who had anticipated the approval of spot Ethereum ETFs this week.
The SEC has already granted initial approval for spot-based Ethereum ETFs from prominent names such as BlackRock, Franklin Templeton, and VanEck. Other key players like Grayscale, Bitwise, ARK 21Shares, Invesco Galaxy, and Fidelity are also gearing up to introduce their own Ethereum ETF products. The final approval of these ETFs would provide investors with a regulated avenue to gain exposure to Ethereum without directly owning the cryptocurrency, potentially opening up profitable investment opportunities. Given Ethereum’s status as the second-largest cryptocurrency by market capitalization, it stands to benefit significantly from these developments.
In the realm of predictions and historical context, Consensys’ Jimmy Ragosa had earlier foreseen the SEC’s potential approval of S-1 documents for Ethereum spot-based ETFs. This prediction came after Bitwise submitted an amended Ethereum ETF S-1 document in June, incorporating updated risk factors, legal statements, contact details, and distribution plans. Ragosa suggested that if these updates were well-received by the SEC, final approval could be imminent, possibly triggering a bullish rally in Ethereum similar to what was observed after the approval of the 19b-4 filings in May.
Market analyst Miles Deutscher had also forecasted that Ethereum could experience a surge to $6,446 by July 23 if a spot Ethereum ETF product received SEC approval. Drawing parallels with Bitcoin’s historical performance post-ETF approval, Deutscher highlighted a notable 75% rally over 63 days that Bitcoin experienced following its ETF approval. This historical trend hints at the potential for a similar price trajectory for Ethereum if the spot ETH ETF approval materializes.
As of now, Ethereum is trading at $3,410, reflecting a 1.45% increase in the last 24 hours and a 23.37% increase over the past week. It’s essential to note that the information provided is for informational purposes only and should not be construed as financial advice. Readers are advised to conduct thorough research before making any investment decisions.
