Eric Balchunas, a senior Bloomberg ETF analyst, has predicted that the launch of spot Ethereum ETFs could occur by late June.
The latest forecast follows BlackRock’s recent amendment to its Form S-1 filing for the iShares Ethereum Trust, submitted to the Securities and Exchange Commission (SEC) on May 29.
This update came nearly a week after the SEC approved BlackRock’s 19b-4 filing, both essential steps for the ETF to commence trading.
“Good sign. [Probably] see rest roll in soon,” Balchunas stated in a May 29 X post.
Balchunas indicated that there might be another round to “fine tune” SEC comments, but he considers an “end of June launch [a] legit possibility.” However, he maintained his approval odds for around July 4, noting that an earlier approval would be a “long shot.”
Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th https://t.co/WymshkTvat
— Eric Balchunas (@EricBalchunas) May 29, 2024
Bloomberg ETF analyst James Seyffart echoed Balchunas’ sentiments, suggesting that BlackRock’s updated S-1 demonstrates significant engagement between issuers and the SEC, indicating progress toward spot Ethereum ETF launches.
BlackRock’s amended S-1 included details about its seed capital investor — the entity funding the ETF’s initial trading activities.
On May 21, a BlackRock affiliate firm, acting as the seed capital investor, agreed to purchase $10,000,000 in shares, receiving 400,000 shares at a price of $25.00 per share, according to the filing.
The ETF will list and trade under the ticker “ETHA.”
On the same day, Hashdex withdrew its bid for a spot Ether ETF, despite its approval by the SEC alongside BlackRock and seven other issuers.
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Analysts predict that these ETFs will drive ETH to new highs, with some speculating that Wall Street will use them as a bet on web3’s growth.
“The US Securities and Exchange Commission (SEC) ‘s green light for spot Ether ETFs is a watershed moment for the crypto industry. It builds on the success of Bitcoin ETFs, offering a secure and regulated way for investors to access Ether. This broader acceptance will fuel 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 to over $73,000 from $42,000 in the two weeks after the ETF started trading on January 11…Similarly, it is anticipated that a spot Ether (ETH) ETF could drive an [Ethereum] rally of as much as 60%,” he added.
However, some analysts speculate that ETH could face price pressure as the Grayscale Ethereum Trust (ETHE) might see $110 million of average daily outflows for weeks after it converts and its discount narrows.
Read more: Ethereum vehicles attract $36m after ETF greenlight
