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Analysts Predict Ethereum Spot ETF Approval Coming Soon

Cryptocurrency experts are confident that The U.S. Securities and Exchange Commission (SEC) will give final approval to applications to launch Ethereum (ETH) spot exchange-traded funds as early as next week.

On July 8, several companies issuing spot Ethereum ETFs filed updated S-1 filings with the SEC.

Ethereum ETF Approval Nears

Fidelity, VanEck, Franklin, 21Shares, Grayscale and BlackRock have filed S-1s. Invesco has not yet followed the lead of other asset managers and filed an updated document with the SEC. opinion The ETF Store’s president Nate Geraci said the firm will do so in the coming days.

Bitwise’s manager filed an updated S-1 last week. The company announced plans to charge no fees on the first $500 million in assets or for six months after launch. Bloomberg ETF analyst James Seyffarth said the listing could happen in the coming weeks.

His colleague Eric Balchunas emphasizedthat the SEC requested updated S-1 forms on July 8. However, the regulator then told issuers that fee disclosures were not required at that time. Balchunas added that the Commission would soon issue guidance and return the documents to companies to disclose fees and other details.

“We don’t have a launch date yet because we haven’t heard the SEC’s plans. Hopefully we’ll find out soon. But I’d say July 18,” Balchunas wrote on X (formerly Twitter).

Bloomberg analysts initially assumed that the Ethereum spot ETF would be listed this week. They also assumed that the launch of the instrument could happen in the week of July 15. The exact timing is still unknown.

Anticipated launch sparks market excitement and volatility concerns

Industry experts believe that the launch of a spot Ethereum ETF will be a game-changer for the crypto market. Institutional investors will have a regulated and convenient way to access ETH, potentially increasing demand for the cryptocurrency and increasing liquidity.

The expected launch of an Ethereum ETF and recent filings for a similar Solana-based instrument highlight the growing interest and adoption of digital assets by traditional financial firms and investors, according to Matteo Greco, a research analyst at Fineqia.

“This trend provides a positive outlook for the digital asset market in the medium to long term, accompanied by an increase in the inflow of funds, liquidity and transparency,” Greco emphasized.

However, Hyblock Capital co-founder and CEO Shubh Varma is more cautious. He noted that the hype surrounding the ETF launch is leading to increased volatility. This is evidenced, for example, by the Deribit Bitcoin Volatility Index (DVOL), which measures expected price changes for an asset over the next 30 days based on options data.

“As DVOL grows and the price of Ethereum plummets, we see a decrease in liquidity in the spot markets. This trend shows that more traders and investors are choosing to wait, reducing their market activity and contributing to larger bid-ask spreads and less stable prices,” Varma explained.

However, the market responded positively to the filing of updated S-1 filings. According to CoinGeckoover the past 24 hours, the price of Ethereum has grown by 5% to $3,060.

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Source: Cryptocurrency

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