Ethereum ETF Launch Set For Early July 2024

• Bloomberg senior ETF analyst Eric Balchunas predicts that spot-based Ethereum (ETH) exchange-traded fund (ETFs) might begin trading by July 2, 2024.
• This comes after the SEC made minimal comments on the S-1 filings for these ETFs, indicating the possibility of a swift approval process.
• Stakeholders believe this launch could enhance market access and boost institutional adoption for Ethereum and the broader industry.

Bloomberg senior ETF analyst Eric Balchunas has forecasted that spot Ethereum exchange-traded funds (ETFs) might start trading as early as next month.

Balchunas revised his previous estimate, moving the potential launch date from July 4 to July 2.

Why Ethereum ETFs Could Begin Trading In July

According to Eric Balchunas, the US Securities and Exchange Commission (SEC) staff made “pretty light” comments on the S-1 filings for spot Ethereum ETFs. 

The SEC has requested further adjustments to these applications, which are expected to be submitted within a week.

“We are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s [on June 14], and they’re pretty light, nothing major, asking for them back in a week,” Balchunas stated.

UPDATE: we are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they're pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next… https://t.co/XJZ8JLwEFF

— Eric Balchunas (@EricBalchunas) June 14, 2024

Balchunas speculated that the SEC might finalize these applications before the holiday weekend. “Anything is possible, but this is our best guess as of now,” he added.

Nate Geraci, President of ETF Store, noted that the update made sense given the minor nature of the SEC’s comments. This suggests that the substantial work is already completed, leaving no reason for further delay.

This development suggests that Ethereum ETFs could launch sooner than SEC Chairman Gary Gensler indicated. On June 13, during a Senate Appropriations Committee budget hearing, Gensler mentioned that Ethereum ETFs might receive approval over the summer but did not specify a timeline for their trading debut.

These financial instruments will allow investors to trade funds that hold the second-largest digital asset by market capitalization. 

Stakeholders believe this move will enhance market access to the crypto industry and boost institutional adoption, similar to the impact of Bitcoin ETFs.

However, some stakeholders think Ethereum ETFs might not garner as much interest as Bitcoin ETFs due to the lack of staking capabilities. 

Regardless, Geraci argues that many underestimate the potential demand for these products.

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