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.
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.