As the cryptocurrency market continues to evolve, analysts are closely monitoring the potential launch of spot Ethereum ETFs. Bloomberg ETF analyst James Seyffart recently stated that he believes these ETFs could launch around July 15, pending the application process settling. However, Seyffart also mentioned that he has low confidence in these predictions, highlighting the uncertainty surrounding the timeline for the launch.
One significant development in the spot Ethereum ETF space was Bitwise’s amendment to its application on July 3. The key change in the amendment was the addition of a six-month fee waiver for the first $500 million in assets. Despite this change, Seyffart expressed confusion as to why the ETFs would not be ready to go within a couple of weeks, emphasizing the minimal nature of the amendments.
It is important to note that there is no official timeline for approvals, and the SEC’s Division of Corporate Finance is taking its time reviewing each fund. Bloomberg ETF analyst Eric Balchunas criticized the latest round of comments, stating that they involved “literally nothing” and suggesting that the funds should have already begun trading. Balchunas highlighted the potential for a launch later this month, despite the ongoing delays in the approval process.
Expectations for Future Amendments
ETF Store president Nate Geraci predicts that applicants will submit one more round of amendments to add fees before the funds can officially begin trading. The SEC approved 19b-4 rule changes on May 23, allowing exchanges to list and trade the pending spot Ethereum ETFs. However, the agency must now approve S-1 registration statements to permit asset managers to issue the funds, with no firm deadline in place for this approval process.
Balchunas previously forecasted that spot Ethereum ETFs would launch before July 4, but extended this prediction as the SEC requested applicants to amend their S-1 registration statements by July 8. Other applicants, such as Galaxy Digital, are also anticipating a near-future launch for the Ethereum ETFs. The industry is eagerly awaiting regulatory approvals and closely monitoring any updates on the launch timeline.
The future of spot Ethereum ETFs remains uncertain as analysts navigate the complex regulatory landscape. While there is optimism for a potential launch later this month, the approval process continues to pose challenges for applicants. As the cryptocurrency market continues to mature, the successful launch of spot Ethereum ETFs could have a significant impact on investor sentiment and market dynamics.
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