- SEC’s forthcoming approval expected after issuers address minor queries, setting stage for July 15 trading debut.
- Experts foresee Ethereum outperforming Bitcoin post-ETF launch, driven by anticipated market inflows and favorable trading conditions.
In July 2024, anticipation is high in the cryptocurrency market as the launch of spot Ethereum ETFs looms closer. The ETFs are set to commence trading shortly after the SEC’s expected approval of the revised S-1 submissions by July 12, paving the way for trading to begin by July 15.
Nate Geraci, president of The ETF Store, highlighted this timeline, underscoring the industry’s eagerness for the ETFs to finally hit the market. He emphasized that the process hinges on the SEC’s final approval, which is anticipated to come after the necessary adjustments to the S-1 filings were made and submitted promptly.
Wen spot eth ETF?
BBG sticking w/ mid-July.
Amended S-1s due July 8th.
Potential final S-1s by July 12th.
Would theoretically mean launch week of July 15th.
via @emily_graffeo @olgakharif pic.twitter.com/NG8xhtCP21
— Nate Geraci (@NateGeraci) July 3, 2024
Last week, the SEC returned the S-1 filings to issuers for minor clarifications, a routine part of the regulatory process. Sources close to the matter confirmed that these issues were being swiftly addressed to expedite the approval process.
Galaxy Digital’s head of asset management, Steve Kurz, affirmed this sentiment on Bloomberg TV, expressing confidence in the forthcoming approval based on their experience with similar Bitcoin ETFs.
“This is window-dressing, the SEC is engaged. We’ve been doing this for months now. We did it for the Bitcoin ETF, the products are substantially similar — we know the plumbing, we know the process.”
ETHNews analysts are speculating on the potential impact of Ethereum ETFs on the broader crypto market.
K33 Research forecasts substantial market absorption, predicting that the ETFs could absorb between 0.75% to 1% of all ETH in circulation within the first five months of trading. This expectation aligns with Gemini’s estimate of significant inflows, projecting up to $5 billion within the first half-year.
Governments are selling into the summer, while open interest in ETH is surging towards record levels with the ETF launch drawing near.https://t.co/PdJIFeikbT
— K33 Research (@K33Research) July 2, 2024
Furthermore, K33’s senior analyst, Vetle Lunde, views the ETF launch as a catalyst for Ethereum’s relative strength compared to Bitcoin. Lunde pointed out that historical trends suggest potential gains for Ethereum against Bitcoin post-ETF approval, highlighting current ETH/BTC ratios as favorable for patient traders.
“ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader.”
As the crypto community awaits the final regulatory steps and the subsequent market reactions, all eyes are on July 15 as a potential trade for Ethereum and the broader cryptocurrency market.
