Experts Forecast Timelines for the Long-Awaited Arrival of Spot Ether ETFs in the Market
Exciting News for Ethereum Investors!
In a major development for Ethereum investors, the U.S. Securities and Exchange Commission (SEC) has given its approval to eight Ether ETF 19b-4 application forms. These applications have been submitted by renowned financial firms such as BlackRock, Fidelity, Grayscale, ARKInvest, VanEck, Invesco Galaxy, and Franklin Templeton. This approval has sparked a wave of speculation regarding the listing and availability of these Ethereum (ETH) ETFs for trading. Unlike Bitcoin ETFs, which faced a long and arduous process before being listed on the New York Stock Exchange (NYSE), experts predict that Ether ETFs will have a much swifter journey to the market.
Let’s delve into what the experts are saying and explore the potential impact on the Ethereum market.
A Speedy Process for Ether ETFs?
While the approval of Bitcoin futures ETFs in October 2021 was a significant milestone, it took the SEC over two years to authorize their listing on major exchanges like Nasdaq and NYSE. However, Nate Geraci, President of ETF Store, believes that the groundwork laid during the approval of Spot Bitcoin ETFs and ETH futures ETFs indicates that the SEC has already completed much of the necessary regulatory work. Additionally, Lipper Alpha Insights reports that on January 10, 2024, the SEC approved a rule change that permits exchanges to list ETH ETFs in the future. This rule change came after the approval of the 19b-4 forms on May 23rd, which clears the path for Ethereum ETFs to enter the market in the near future.
The Burning Question: When Will the SEC Approve Spot ETH ETF Registration Statements?
As of now, no one knows the exact date. However, Nate Geraci expects that the approval could come within the next few weeks or, at the most, in 2-3 months, depending on the SEC’s pace. The heavy lifting has already been done following the approval of spot BTC ETFs and ETH futures ETFs, so it is now a matter of how long the SEC wants to prolong the process.
Optimistic Timelines
Taking a more lighthearted approach, Eric Balchunas, a senior Bloomberg ETF analyst, suggests that the SEC might make a decision on ETH ETFs before or after the Fourth of July, giving American investors an extra reason to celebrate Independence Day.
Understanding Approval Timelines
James Seyffart, an expert from Bloomberg Intelligence, shared his insights during an interview on the Bankless HQ podcast. He mentioned that while the exact approval date is uncertain, the process could take anywhere from a few weeks to several months. Seyffart pointed out that Bitcoin ETFs took three months to gain approval after filing, and he speculates that Ethereum ETFs may follow a similar or even faster trajectory.
Market Reactions
The anticipation surrounding the launch of Ethereum ETFs has ignited a bullish sentiment in the market. Ethereum’s price has surged to $3,932, marking a 3.4% increase in the last 24 hours and a 35% rise over the past two weeks. This upward trend can be attributed in part to former President Donald Trump’s positive comments on cryptocurrencies, which have boosted confidence in the digital asset market.
“Based on today’s price action, it appears that market participants are expressing their bullishness in ETH rather than BTC, especially with the potential institutional demand once the ETH spot ETF starts trading.”
– QCP Capital
With the SEC’s approval of these eight ETF applications, the stage is set for an exciting period in the crypto market. Now, the question remains: when do YOU think these Ether ETFs will hit the market? Share your predictions!
Tags: Ethereum ETF