It’s entirely possible for Ethereum ETFs to debut next month
Crypto News– The recently approved spot Ether (ETH) exchange-traded funds might hit the market as soon as mid-June — should the United States securities regulator adhere to a timeline similar to that of its spot Bitcoin ETF approval process.
Spot Ether ETFs received the green light for their 19b-4 filings today, clearing the way for their listing on respective exchanges. However, applicants must first obtain approved S-1 registration statements before commencing trading activities.
According to Bloomberg ETF analyst James Seyffart, S-1 approvals could potentially arrive in a couple of weeks, although he cautioned that the process might extend longer, typically spanning up to five months.
On the other hand, fellow Bloomberg ETF analyst Eric Balchunas indicated that a launch by mid-June is certainly feasible. He anticipates a single round of comments on the S-1 amendments, akin to the SEC’s feedback process for spot Bitcoin ETF applicants.
Balchunas pointed out that this feedback process historically lasted around two weeks, leading him to estimate a mid-June timeframe.
Ethereum ETF Projections and Concerns Amidst Approval Process
If the S-1s receive approval, Seyffart predicts that spot Ether ETFs will attract around 20% of the flows observed by spot Bitcoin ETFs, whereas Balchunas suggests a more conservative estimate ranging from 10% to 15%.
Based on data from Farside Investors, spot Bitcoin ETFs have accumulated $13.3 billion in net inflows since their launch approximately four and a half months ago. Even capturing 20% of this figure would result in spot Ether ETFs amassing a combined total of $2.66 billion within the same timeframe.
However, concerns linger regarding potential outflows from the spot Ether ETF market due to the conversion of assets from the Grayscale Ethereum Trust, akin to the outflows witnessed with the firm’s converted Bitcoin investment product.
Currently, more than $11.3 billion is locked in the Grayscale Ethereum Trust, as per data from Arkham Intelligence.
FAQs
What are the factors influencing the potential launch of Ethereum ETFs next month?
The potential launch of Ethereum ETFs next month depends on various factors, including regulatory approvals and applicant readiness.
How likely is it that Ethereum ETFs will be introduced in the near future?
There’s a strong possibility of Ethereum ETFs being introduced in the near future, given recent regulatory developments and industry trends.
What could Ethereum ETFs mean for the cryptocurrency market?
Ethereum ETFs could have significant implications for the cryptocurrency market, potentially leading to increased institutional investment and greater accessibility for retail investors.
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