Ethereum ETFs Could Go Live in July, Analyst Says

Bloomberg analyst Eric Balchunas expects spot Ether (eth) exchange-traded funds (ETFs) to begin trading in the United States in July.

Balchunas updated his forecast for the official launch of Ether spot ETFs, moving the upper/lower date to July 2.

The crypto expert noted that staff at the US Securities and Exchange Commission (SEC) had sent comments on the S-1 filings to issuers, describing them as “pretty light” with no major issues.

He mentioned that the SEC requested responses within a week, suggesting a good chance that the ETFs could be declared effective the following week, potentially before the “holiday weekend.”

Balchunas emphasized that while anything is possible, this is his best estimate at this time.

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On June 13, SEC Chairman Gary Gensler x.com/EleanorTerrett/status/1801262188780265838″ target=”_blank” rel=””>provided some clarity on eth ETFs during his testimony before Senator Bill Hagerty.

Gensler indicated that he expects S-1 filings for ethereum spot ETFs to be approved by the end of the summer. This statement has reinforced the belief that, while there may be some delays, approval will likely occur in the coming months.

Balchunas too x.com/EricBalchunas/status/1801297811067031946?t=htsyVCY5eu5XsYL86B2UiA&s=19″ target=”_blank” rel=””>mentioned that ethereum spot ETF issuers were awaiting comments from the SEC's Division of Corporate Finance (Corp Fin) on their S-1 filings, which they had filed two weeks earlier.

He explained that this delay was attributed to Corp Fin reviewing these documents for the first time, highlighting that this unexpected situation was due to a likely last-minute political change within the SEC, which also surprised Corp Fin.

Balchunas further emphasized that there is uncertainty about how quickly Corp Fin could prioritize and process submissions.

However, some observers believe that ethereum ETFs may not attract as much attention as bitcoin (btc) ETFs because they do not offer staking capabilities.

SEC Commissioner Hester Peirce, known for her liberal stance on cryptocurrencies and nicknamed “crypto Mom,” has expressed skepticism regarding the SEC's treatment of ethereum. Peirce has highlighted that historically, the SEC has categorized ethereum as a security, unlike bitcoin, which is classified as a commodity.

“The SEC has held that Ether is a security, which introduces a different set of challenges compared to the approval process for bitcoin ETFs,” Peirce said.

The ethereum ETF Journey So Far

The United States Securities and Exchange Commission (SEC) has begun the approval process for ethereum exchange-traded funds (ETFs), marking a notable development for the cryptocurrency industry.

On May 23, the SEC approved eight 19b-4 filings. However, trading in these ETFs cannot begin until they obtain the required approvals for their S-1 registration statements.

Forms 19b-4 are regulatory filings that propose modifications to current rules or regulations, facilitating the listing and trading of new securities. Approval of these forms signifies SEC authorization for exchanges to list the ETFs, although it does not guarantee the immediate start of trading in the ETFs.

This progress represents a significant step forward in the approval process for ethereum ETFs, which the cryptocurrency community has been eagerly awaiting.

At the same time, the SEC is reviewing S-1 registration statements filed by ethereum ETF issuers. These statements provide complete details about the companies and the specific securities they plan to offer.

At the time of writing, the price of ethereum (eth) is around $3,562.97, representing a 2.5% increase in the last 24 hours. However, the world's second-largest cryptocurrency is still down 3.5% in the weekly period, according to data from CoinGecko.