Ethereum
ETH Price Falls as Ethereum ETF Approval Delayed
Ethereum (ETH) price has suffered a setback after briefly breaking above $3,500 on Monday, before falling back to the $3,400 support level on Tuesday. The delay is due to the SEC’s expected full approval of Ethereum ETF applications, which have now been postponed until July 8.
SEC Requests Revised Documents
Analysts had initially expected approval on July 2, but the SEC asked issuers to submit revised documents by July 8. Bloomberg ETF expert Erich Balchunas noted on social media that the SEC took longer to provide comments, resulting in the revised timeline. declared:
Unfortunately, we’re going to have to postpone our over/under until after the holidays. It seems like the SEC took longer to respond to people this week (although there were still very slight changes) and from what I hear, next week is dead because the holidays = July 8th, the process starts again and shortly after that they’ll launch
SEC Chairman Gary Gensler had previously indicated that Ethereum ETFs would likely be approved by “late summer.” The SEC is currently reviewing and approving the S-1 Formswhich represent the second step in the launch of Ethereum spot ETFs.
Despite the delay, asset managers remain optimistic that the SEC will greenlight the first U.S. spot Ethereum ETF applications that invest directly in Etherwith expectations set for mid-July. A recent Bloomberg report highlighted the constructive dialogue between asset managers and the regulator.
Ethereum ETF Launch Gets Closer
According to reportThe regulator’s comments raised minor questions that issuers are currently grappling with. In May, the SEC approved the exchanges’ proposal to list such products, requiring separate approval for their launch.
Steve Kurz, head of asset management at Galaxy Digital, predicted approval of an Ethereum ETF in the coming weeks. Galaxy Digital has filed for an Ether ETF, and Kurz expressed confidence in the process, noting his familiarity with the requirements based on his experience with the Bitcoin ETF.
Several major companies, including BlackRock Inc., Fidelity Investments, 21Shares and Invesco, have filed applications that are awaiting approval. Disclosure of fees on the respective funds is a necessary step before trading can begin.
Assuming the funds get the green light, a key question remains: Will Ether wallets generate a similar level of demand to the historic debut of U.S. spot-Bitcoin ETFs in January, which amassed $52 billion in assets?
$15 billion in revenues in the first 18 months
Like before reported According to NewsBTC, Ethereum ETFs could attract significant inflows in the first few months of trading, although they may not have the same volume of inflows as the newly approved Bitcoin ETF market.
In a note to investors, Bitwise Chief Investment Officer (CIO) Matt Hougan projected that these ETFs could see net inflows of $15 billion in their first 18 months of trading.
To arrive at this estimate, Hougan took into account the market capitalizations of Bitcoin and Ethereum, expecting investors to allocate to their exchange traded products (ETP) proportionally.
Hougan noted that U.S. investors have already invested $56 billion in Spot Bitcoin ETPs, and he predicts that figure will reach $100 billion or more by the end of 2025.
Based on this benchmark, he determined that Spot Ethereum ETFs would need to attract $35 billion in assets to match Bitcoin ETFs, a process that could take around 18 months.
Additionally, he noted that the Spot Ethereum ETFs would launch with $10 billion in assets, thanks to the conversion of the Grayscale Ethereum Trust (ETHE) into an ETF.
At the time of writing, ETH is trading at $3,418, recording significant losses over the monthly time frame amounting to over 9%.
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