Spot Ethereum ETFs Set for July 2nd Launch, Claims Bloomberg Analyst

The post Spot Ethereum ETFs Set for July 2nd Launch, Claims Bloomberg Analyst appeared first on Coinpedia Fintech News

A long-awaited event for crypto enthusiasts is on the horizon: Spot Ethereum ETFs are expected to launch by July 2nd! This news, fueled by analyst Eric Balchunas, has the financial world buzzing. With the SEC seemingly ready to give the green light, could this be a game-changer for Ethereum’s price?

Read on to explore the latest developments and what this means for the future of Ethereum.

SEC Approval Process and Timeline

Eric Balchunas revealed that the SEC has issued light comments on S-1 filings to ETF issuers, with a request for responses within a week. This indicates a strong likelihood of the SEC declaring the ETFs effective in the following week. 

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

The SEC has already approved 19b-4 forms for eight Ethereum ETF issuers, including industry giants like BlackRock, Fidelity, and VanEck. Final approval of the S-1 forms remains the last hurdle before trading can commence.

SEC Chair Gary Gensler has hinted at a favorable outlook for the approval of S-1 forms for Ethereum ETFs during his recent testimony at a Senate Appropriations Committee hearing, suggesting that the green light could come as early as this summer.

Bullish Predictions & Sentiments

Asset manager VanEck is projecting a bullish future for Ethereum, forecasting a price target of $22,000 by 2030. This projection is based on an anticipated generation of $66 billion in “free cashflows” by Ethereum over the next decade. Furthermore, the launch of spot Ethereum ETFs is expected to attract substantial institutional capital, with Standard Chartered’s Geoff Kendrick estimating inflows between $15 and $45 billion within the first year.

Singapore-based crypto trading firm QCP Capital anticipates a significant price rally for Ethereum, predicting a 60% surge in ETH prices following the approval of spot Ethereum ETFs. This optimism is based on the market response observed after the approval of spot Bitcoin ETFs earlier this year.

Short-Term Challenges for Ethereum

Despite these bullish projections, Ethereum faces short-term price challenges, currently standing at $3,544. The cryptocurrency has struggled to breach key resistance levels, leaving traders cautious as the price hovers below $3,550. Analysts warn of potential downside risks if Ethereum fails to maintain support above $3,420, with further declines likely toward the $3,250 level.

The coming weeks will be critical for Ethereum and the broader crypto market, as the anticipated approval and launch of spot Ethereum ETFs could significantly influence market dynamics and investor sentiment.

Also Read : Crypto Trading Expert Shares Key Insights on Bitcoin and Ethereum Strategies