Following the approval of ethereum spot ETFs (exchange-traded funds), potential issuers have had to wait for the commercial debut of their products. This has led to many comments and speculations regarding the possible date of the final approvals of Ether ETFs.
Bloomberg analyst Eric Balchunas is the latest personality to predict when ethereum spot ETFs could begin trading in the United States.
Why ethereum Spot ETFs Can Start Trading Before July 2
In a recent x.com/EricBalchunas/status/1801725292404261308″ target=”_blank” rel=”noopener nofollow”>post on the platform, Balchunas presented July 2, 2024 as the new projected date for when ethereum exchange-traded funds could begin trading. This update is based on the Securities and Exchange Commission's (SEC) response to issuers on Friday, June 14.
According to the ETF expert, the SEC made “fairly light” comments to issuers' S-1 forms, with no major issues to address. Balchunas also mentioned that the commission expects issuers to respond to these comments within a week.
The SEC approved Forms 19b-4 for eight potential issuers, notably BlackRock, Fidelity, VanEck and Franklin Templeton. The agency would also need to greenlight S-1 forms for ethereum spot ETFs to go live.
Balchunas wrote in his post on x:
There's a good chance they'll work on declaring them effective next week and shelving them before the holiday weekend. Anything is possible, but this is our best guess for now.
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Note: Our previous over/under was on July 4th, so this isn't a major change, but 1) we were starting to feel like it would take longer, so that's good news and b) we basically decided on the over/under on where they are most torn. 50-50 on where to bet and July 2nd is that date right now.
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1801725866592112958?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 14, 2024
Recently, SEC Chairman Gary Gensler told senators during a budget hearing that final approvals for ethereum spot ETFs should be finalized by summer. The final launch of these products is expected to attract a significant influx of capital into the second largest cryptocurrency and the market.
ethereum Demand Surge Ahead of ETF Launch
The latest on-chain data shows that there has been increased demand for ethereum, especially from permanent investors. This revelation is based on a significant increase in CryptoQuant's permanent holder inflows metric.
Permanent holders, or hodlers, refer to participants who may choose to hold a cryptocurrency for longer periods and will not be easily wiped out by market volatility. According to the on-chain analysis firm, this class of investors ethereum/ethereum-hodlers-scoop-298000-eth-in-24-spot-etf-trading/” target=”_blank” rel=”noopener nofollow”>picked up 298,000 btc on Wednesday, June 12.
Considering the amount purchased by permanent holders, it is likely that institutions are responsible for this acquisition as they attempt to position themselves well in the market ahead of the imminent launch of ethereum spot ETFs.
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eth price approaching $3,600 on the daily timeframe | Source: ETHUSDT chart on x/CE5ba7Bo/" target="_blank" rel="noopener nofollow">TradingView
Featured image by Bernard Marr, TradingView chart
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