The delay in the expected full approval of Ethereum ETF applications by the Securities and Exchange Commission (SEC) has caused a setback for Ethereum (ETH) price, which dropped back to the $3,400 support level after briefly surpassing the $3,500 mark. Analysts had initially anticipated approval by July 2, but the SEC has requested issuers to submit revised filings by July 8. This delay has created uncertainty in the market and has put pressure on the price of Ethereum.
Despite the delay in approval, asset managers remain optimistic about the SEC greenlighting the first US spot Ethereum ETF applications that directly invest in Ether. A recent Bloomberg report highlighted the constructive dialogue between asset managers and the regulator. The regulator’s feedback provided minor questions that issuers are currently addressing, which indicates a positive outlook for the approval of Ethereum ETFs in the near future.
Steve Kurz, head of asset management at Galaxy Digital, predicted the approval of an Ethereum ETF within the next couple of weeks. Galaxy Digital has filed for an Ether ETF, and Kurz expressed confidence in the process, emphasizing their familiarity with the requirements based on their experience with the Bitcoin ETF. Several prominent firms, including BlackRock Inc., Fidelity Investments, 21Shares, and Invesco, have filings awaiting approval, showing a strong interest in Ethereum ETFs.
Ethereum ETFs may 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. Bitwise’s Chief Investment Officer (CIO), Matt Hougan, projected that these ETFs could see $15 billion in net inflows within their first 18 months of trading, based on the market capitalizations of Bitcoin and Ethereum. He anticipates that Spot Ethereum ETFs would need to attract $35 billion in assets to match the Bitcoin ETFs, a process that could take around 18 months.
The delay in SEC approval for Ethereum ETFs has caused a setback for Ethereum price, but asset managers remain optimistic about the approval in the near future. The potential for significant inflows and demand for Ethereum ETFs indicates a positive outlook for the market. Investors and traders will be closely watching for any developments regarding the approval of Ethereum ETFs and its impact on the price and demand for Ethereum.
Leave a Reply