Asset managers are currently optimistic about the Security and Exchange Commission’s approval for the first U.S. ETFs directly investing in Ethereum. There is a deadline set by the SEC for ETF applicants to submit updated paperwork and amended S-1s by July 8, with the possibility of additional rounds of filings. Recent feedback from the SEC to issuers has involved minor questions that are being addressed. Galaxy Digital’s Head of Asset Management, Steve Kurz, has stated that an Ether ETF could potentially be approved within the next couple of weeks.
While major asset managers such as BlackRock, Fidelity, Ark 21Shares, and Invesco have pending filings for Ethereum ETFs, many issuers have yet to disclose their fund fees. It is uncertain if Ethereum ETFs will generate demand similar to spot Bitcoin ETFs, which have accumulated $52 billion in assets since their launch in January. Analysts have estimated that the Ethereum ETF flows could be around 10% to 15% of Bitcoin ETF flows and that ETH prices may fall as much as 30% following their launch. However, K33 Research forecasts that Ethereum will outperform Bitcoin in July.
Bitcoin is facing potential selling pressure from a forthcoming distribution of almost $9 billion worth of BTC related to the defunct Mt. Gox exchange. Meanwhile, Ethereum prices are not showing positive momentum as the asset fell 3% to an intraday low of $3,342 during Asian trading on Wednesday. Although ETH peaked at $3,500 earlier this week, it is currently 17% down from its 2024 peak of just over $4,000 and 31% down from its November 2021 all-time high.
Asset managers are eagerly anticipating the approval of Ethereum ETFs by the SEC, with hopes that this could potentially drive demand and strengthen the relative performance of ETH compared to Bitcoin. Despite price volatility and market uncertainties, the outlook for Ethereum ETFs remains positive, and many believe that this could be a significant milestone for the cryptocurrency market.
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