Eric Balchunas, a senior Bloomberg ETF analyst, has projected that spot Ethereum ETFs could launch by late June. This prediction follows BlackRock’s recent amendment to its Form S-1 filing for the iShares Ethereum Trust, submitted to the Securities and Exchange Commission (SEC) on May 29.
This update came almost a week after the SEC approved BlackRock’s 19b-4 filing, both crucial steps toward initiating ETF trading. “Good sign. [Probably] see rest roll in soon,” Balchunas stated in a May 29 post on X (formerly Twitter).
Balchunas mentioned there might be another round to “fine-tune” SEC comments but believes an “end of June launch [is a] legit possibility.” Nonetheless, he maintained that the approval odds hover around July 4, noting that an earlier approval would be a “long shot.”
James Seyffart, another Bloomberg ETF analyst, shared Balchunas’ optimism, suggesting that BlackRock’s updated S-1 shows significant engagement between issuers and the SEC, indicating progress towards the launch of spot Ethereum ETFs.
The amended S-1 filing from BlackRock included details about its seed capital investor, who will fund the ETF’s initial trading activities. On May 21, a BlackRock affiliate agreed to purchase $10 million in shares, receiving 400,000 shares at $25.00 each, according to the filing. The ETF will trade under the ticker “ETHA.”
In a related development, Hashdex withdrew its bid for a spot Ether ETF, despite its approval by the SEC alongside BlackRock and seven other issuers. Analysts predict that these ETFs could push ETH to new highs, with speculation that Wall Street will leverage them as a bet on web3’s growth.
Sumit Gupta, Co-founder of CoinDCX, highlighted the SEC’s green light for spot Ether ETFs as a watershed moment for the crypto industry. He stated that it builds on the success of Bitcoin ETFs, offering a secure and regulated way for investors to access Ether. This broader acceptance is expected to fuel mainstream adoption and reflect a maturing regulatory environment, further legitimizing the entire digital asset space.
Gupta noted, “Bitcoin rose to over $73,000 from $42,000 in the two weeks after the ETF started trading on January 11… Similarly, it is anticipated that a spot Ether (ETH) ETF could drive an [Ethereum] rally of as much as 60%.”
However, some analysts caution that ETH could face price pressure as the Grayscale Ethereum Trust (ETHE) might experience $110 million of average daily outflows for weeks after it converts, narrowing its discount.
As the market anticipates the launch of spot Ethereum ETFs, the broader implications for the crypto landscape remain significant, potentially paving the way for further growth and mainstream acceptance of digital assets.
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