Bloomberg Predicts SEC’s Approval of Ethereum ETF in May
The recent groundbreaking approval of 11 spot Bitcoin ETFs on January 10, 2024, has sparked excitement in the cryptocurrency industry as analysts anticipate the potential approval of Ethereum’s spot ETFs later this year.
Analysts are optimistic about the prospects of Ethereum, with Bloomberg ETF analyst Eric Balchunas estimating a 70% chance of approval by May. This article explores the implications of Bitcoin ETF approval on Ethereum, the sentiments among analysts, and the key players seeking regulatory approval for Ethereum spot ETFs.
A new deadline to keep an eye on has just been announced. May 23rd is the final deadline for VanEck’s spot ETH ETF decision, creating anticipation in the market.
Analyst Insights and Market Sentiments
The approval of Bitcoin ETFs has opened up new opportunities and innovations in the cryptocurrency market. Eric Balchunas, a senior ETF analyst at Bloomberg, believes that Ethereum is closely tied to Bitcoin and will follow its movements. He previously had reservations about approving spot Bitcoin ETFs but now holds an optimistic view for Ethereum. Based on insights from industry insiders, Balchunas suggests that spot Ether ETFs are likely to receive approval.
Digital asset lawyer Joe Carlasare also envisions the approval of Ethereum spot ETFs this year, although the timeline may exceed initial expectations. Carlasare suggests that the SEC may establish a precedent for approving digital asset ETFs while maintaining discretionary powers.
New Deadline Fuels Speculation
With multiple applications for Ethereum spot ETFs, including those from VanEck, Ark 21Shares, and Hashdex, awaiting SEC decisions by the end of May, the industry is eagerly awaiting the outcomes. The final deadline for VanEck’s spot Ethereum ETF decision on May 23, 2024, has intensified the anticipation.
Carlasare predicts that Ethereum spot ETFs may not start trading until the third quarter of 2024. However, Hashdex remains hopeful for an earlier timeline, suggesting that spot Ether products could begin trading as early as the second quarter.
Following the approvals, Ether experienced a 3% price surge, surpassing $2500 for the first time since May 2022, indicating a 7% increase in the past 24 hours.
SEC Decision Deadlines
Several prominent financial institutions and asset management firms, such as ARK 21Shares, BlackRock, Fidelity, Grayscale, Hashdex, Invesco Galaxy, and VanEck, have submitted applications for Ethereum spot ETFs. The SEC must make decisions on these applications by specific deadlines:
– VanEck: May 23
– ARK 21Shares: May 24
– Hashdex: May 30
– Grayscale: June 18
– Invesco: July 5
– Fidelity: August 3
– BlackRock: August 7
The approval of spot Bitcoin ETFs has instilled optimism in the cryptocurrency market, paving the way for Ethereum spot ETFs. Analysts and industry experts anticipate favorable outcomes, with Eric Balchunas estimating a 70% chance of approval by May.
Tags: Ethereum