Bloomberg analyst predicts June launch date for spot ETH ETFs

Senior Bloomberg ETF analyst Eric Balchunas predicted that the launch of spot Ethereum ETFs could occur in late June.

The latest prediction follows BlackRock’s latest amendment to its Form S-1 filing for the iShares Ethereum Trust, which it filed with the Securities and Exchange Commission (SEC) on May 29.

This update comes almost a week after the SEC approved BlackRock’s 19b-4 filing; Both were important steps for the ETF to begin trading.

“It’s a good sign. [Probably] Look for the rest to come soon,” Balchunas said in a May 29 X post.

Balchunas noted there may be another round to “fine-tune” SEC comments but is eyeing a “late June launch” [a] legal possibility.” But he maintained the possibility of approval for around July 4, stating that an earlier approval would be “a long shot.”

Good sign. You’ll probably see the rest coming soon. Then give the Staff comments another round of fine-tuning. End of June opens up a legal possibility even though I kept my business/compliance date as July 4th https://t.co/WymshkTvat

— Eric Balchunas (@EricBalchunas) May 29, 2024

Bloomberg ETF analyst James Seyffart also echoed Balchunas’ thoughts, suggesting that BlackRock’s updated S-1 shows significant interaction between issuers and the SEC, indicating progress towards spot Ethereum ETF launches.

BlackRock’s amended S-1 included details about the seed equity investor, the entity that funded the ETF’s initial business operations.

According to the filing, on May 21, a BlackRock affiliate acting as a seed equity investor agreed to purchase $10,000,000 in shares by purchasing 400,000 shares at a price of $25.00 per share.

The ETF will be listed and traded under the ticker symbol “ETHA”.

On the same day, Hashdex, along with BlackRock and seven other issuers, withdrew its spot Ether ETF proposal, despite it being approved by the SEC.

Analysts predict that these ETFs will push ETH to new highs, while some predict that Wall Street will use them as a bet on the growth of web3.

“The US Securities and Exchange Commission (SEC) greenlight for spot Ether ETFs is a milestone for the crypto industry. Building on the success of Bitcoin ETFs, it offers investors a safe and regulated way to access Ether. “This broader adoption will drive mainstream adoption and reflect a maturing regulatory environment, paving the way for further legitimizing the entire digital asset space,” Sumit Gupta, Co-Founder of CoinDCX, told crypto. News in an earlier statement.

“Bitcoin rose from $42,000 to over $73,000 in the two weeks after the ETF began trading on January 11… Similarly, a spot Ether (ETH) ETF could also lead to an upside. [Ethereum] “There is a rally of up to 60 percent,” he added.

However, some analysts think ETH may face price pressure as the Grayscale Ethereum Trust (ETHE) could see an average daily outflow of $110 million for weeks after the conversion and its discount will narrow.