Eric Balchunas, a seasoned Bloomberg analyst specializing in ETFs, has made a bold prediction that spot Ethereum ETFs could hit the market by late June. This projection comes in the wake of BlackRock’s recent modification to its Form S-1 filing for the iShares Ethereum Trust, which was submitted to the Securities and Exchange Commission (SEC) on May 29.
Following the SEC’s approval of BlackRock’s 19b-4 filing, a crucial step in the ETF’s trading process, Balchunas expressed optimism on May 29. He mentioned that there might be some additional fine-tuning required based on SEC feedback, but he believes a legitimate launch by the end of June is a possibility. However, he remains cautious, giving odds for approval around July 4, considering an earlier approval to be a long shot.
James Seyffart, another Bloomberg ETF analyst, echoed Balchunas’ positive outlook, noting that BlackRock’s updated S-1 reflects significant progress in the interaction between issuers and the SEC, signaling a path toward the launch of spot Ethereum ETFs.
BlackRock’s revised S-1 also disclosed information about its seed capital investor, the entity funding the ETF’s initial trading operations. On May 21, a BlackRock affiliate acting as the seed capital investor agreed to purchase $10,000,000 worth of shares, acquiring 400,000 shares at $25.00 per share. The ETF is set to be listed and traded under the ticker symbol “ETHA.”
Interestingly, on the same day, Hashdex withdrew its application for a spot Ether ETF, despite receiving approval from the SEC alongside BlackRock and seven other issuers.
Analysts anticipate that the introduction of these ETFs will drive Ethereum to new price highs, with some speculating that Wall Street will view them as a wager on the growth of web3.
Sumit Gupta, Co-founder of CoinDCX, highlighted the significance of the SEC’s approval for spot Ether ETFs, emphasizing its potential impact on the crypto industry. He believes that this development will lead to mainstream adoption of Ether, reflecting a maturing regulatory environment and further legitimizing the digital asset space.
Gupta also drew parallels to the impact of Bitcoin ETFs on the market, suggesting that a spot Ether ETF could potentially trigger a 60% rally in Ethereum’s price. However, there are concerns that ETH could face downward pressure as the Grayscale Ethereum Trust (ETHE) might experience significant outflows once it converts, leading to a narrowing discount.
In related news, Ethereum vehicles have already attracted $36 million in investments following the green light for ETFs.