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Following the approval of all eight Spot Ethereum ETFs, attention has turned to the expected launch of these highly anticipated financial products. According to Bloomberg ETF analyst Eric Balchunas, this launch is likely to occur on July 2nd.
Balchunas sheds light on the SEC’s latest developments, hinting at a potential green light for ETF trading.
SEC Approval Process and Timeline
Eric Balchunas revealed that the SEC has issued light comments on S-1 filings to ETF issuers, with a request for responses within a week. This indicates a strong likelihood of the SEC declaring the ETFs effective in the following week.
However, the SEC has already approved 19b-4 forms for eight Ethereum ETF issuers, including major firms like BlackRock, Fidelity, and VanEck. Meanwhile, the final approval of the S-1 forms is necessary before trading can commence.
However, SEC Chair Gary Gensler recently hinted at the possibility of approving S1 forms for Ethereum ETFs during the summer, suggesting a favorable outlook for crypto investment products during his testimony at a Senate Appropriations Committee hearing.
Growing Institutional Demand
Meanwhile, asset manager VanEck projects a bullish future for Ethereum, forecasting a price target of $22,000 by 2030. This optimism is based on the anticipated generation of $66 billion in “free cashflows” by Ethereum over the coming decade.
Moreover, the launch of spot Ethereum ETFs is anticipated to attract substantial institutional capital, with projections ranging from $15 to $45 billion in inflows within the first year as estimated by Standard Chartered’s Geoff Kendrick.
In line with these expectations, Singapore-based crypto trading firm QCP Capital predicts a substantial price rally for Ethereum. The approval of spot Ethereum ETFs could trigger a 60% surge in ETH prices, mirroring the market response witnessed after the approval of spot Bitcoin ETFs earlier this year.
Ethereum Price Struggle Continues
Despite bullish projections for Ethereum’s future, price struggles persist in the short term and currently stand at $3544. Ethereum’s failure to breach key resistance levels has left traders cautious, with the price hovering below $3,550.
Analysts warn of potential downside risks if Ethereum fails to maintain support above $3,420, with further declines likely towards the $3,250 level.
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