Ethereum ETFs Teased for July 2nd Launch: Here’s What We Know

• Anticipation is heightening for the approval and launch of ETH ETFs.
• The SEC has recently shown renewed interest in proposals from hopeful issuers.
• Analysts are weighing in on the likely timeline for approval.

The waning optimism surrounding the prospects of an Ethereum ETF approval has recently taken a positive turn when the Securities and Exchange Commission (SEC) suddenly reignited engagement with applicants. On May 20, 2024, the SEC requested applicants to amend and refile their 19b-4 forms, in part greenlighting nearly eight proposals. 

With renewed hopes for the proposed investment vehicle, analysts are once again discussing the likely verdict and timeline for launch.

Ethereum ETFs When?

Weighing in on the likely launch date of spot Ethereum ETFs on June 14, 2024, Bloomberg analyst Eric Balchunas stated that July 2nd has become a plausible timeline for issuers to debut. The prediction is based on the SEC’s provided feedback on the issuers’ S-1 filings earlier on June 10, which were relatively minor and indicated no significant roadblock. 

Balchunas highlighted that issuers are expected to respond within a week. Meeting this deadline could prompt the SEC to declare the filings effective the following week, potentially paving the way for ETFs to launch on or around July 2nd.

This follows the initial prediction of July 4th as a more plausible date. While it is not a major shift, Balchunas emphasized that the length of time initially expected for the proposals now appears slimmer. The ETF analyst’s predictions are also fuelled by recent comments by SEC chair Gary Gensler, who has spearheaded the major U-turn witnessed for the proposals.

SEC Chair Now Pro-ETH ETFs?

During a Thursday, June 13, 2024 hearing, Gensler hinted at the likely timeline for the widely anticipated ETH ETFs approval, stating, “I would envision sometime over the course of this summer.” 

The assertion was made in response to Senator Bill Hagerty’s inquiry about the status of the ongoing review processes. The chair further stated that the registration process is proceeding smoothly.

"Individual issuers still are working through the registration process. That’s working smoothly," he stressed,” stated Gensler.

While the shift in Gensler’s approach marks a positive development for the proposals and broader industry, it has prompted questions about the reasons behind the sudden increase in optimism and interest, especially given the SEC’s previously lukewarm stance on the proposals. Some market watchers suggest that the commission’s recent actions are politically motivated, aimed at setting a positive tone ahead of the upcoming United States elections. However, the mounting dissent from US lawmakers and overall scrutiny over the SEC’s approach to the industry have also been highlighted as probable factors influencing the change.

On the Flipside

• Market analysts believe that Ethereum ETFs are unlikely to attract the record inflows witnessed by their Bitcoin counterparts.
• Despite the increasing odds, the SEC remains engaged in a year-long probe into ETH’s security status.
• Ethereum (ETH) has had a rather sluggish performance this week. At press time, the second largest crypto asset is trading at $3,502, down approximately 5% in the last seven days. 

Why This Matters

The potential launch of an ETH ETF on July 2nd would represent a regulatory victory for the crypto industry, enabling a broader range of investors to access the asset class and signaling improved regulatory standards. However, these predictions are not definitive, and the commission will make the final decision on the approval and launch dates.

Read this article to understand how issuers are amending Ethereum ETF applications in the race for approval:
Ethereum ETF Hopefuls Axe Staking Plans in Amended Filings

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