Ethereum (ETH) prices briefly surpassed the $3,500 mark on Monday before retreating and falling back to the $3,400 support level on Tuesday. The delay was due to expected SEC full approval of the Ethereum ETF application, which has now been postponed to July 8.
SEC Requests Amended Filing
Analysts had initially expected approval by July 2, but the SEC now requires issuers to submit amended applications by July 8. Bloomberg ETF expert Eric Balchunas shared on social media that the timeline has been revised because the SEC needs more time to provide feedback. stated:
Unfortunately, I think the over/under will have to be postponed until the holidays. It looks like the SEC took extra time to get back to people this week (very light adjustments though). I've heard the process will start again next week for the holidays, which means July 8th, and then shortly after.
SEC Chairman Gary Gensler previously suggested that an Ethereum ETF would likely be approved by “late summer.” The SEC is now S-1 FormThis marks the second step towards the launch of a Spot Ethereum ETF.
Despite the delays, asset managers remain optimistic that the SEC will approve the first Ethereum ETF application in the United States. etherIt is expected to take place in mid-July. A recent Bloomberg report highlighted the constructive dialogue between asset managers and regulators.
Ethereum ETF Launch Approaching
according to reportThe regulator's feedback raised minor questions that issuers are currently working through. In May, the SEC approved the exchange's proposal to list the products, but the listing would require separate approval.
Steve Kurtz, head of asset management at Galaxy Digital, predicted that an Ethereum ETF will be approved within the next few weeks. Galaxy Digital has applied for an Ethereum ETF, and Kurtz expressed confidence in the process, emphasizing that the firm is familiar with the requirements based on its experience. Bitcoin ETFs.
Several big names have applications pending approval, including BlackRock Inc., Fidelity Investments Inc., 21Shares Inc. and Invesco Inc. Disclosure of each fund's fees is a necessary step before trading can begin.
Assuming the fund is approved, one key question remains: Will the Ethereum portfolio generate the same level of demand as the historic debut of a U.S. spot bitcoin ETF in January, which hit $52 billion in assets?
$15 billion in inflows within the first 18 months
As before report According to NewsBTC, an Ethereum ETF could attract significant inflows in the first few months of trading, but the inflows may not be on par with the newly approved Bitcoin ETF market.
In a note to investors, Bitwise Chief Investment Officer Matt Hogan predicted that the ETFs could see net inflows of $15 billion within 18 months of starting trading.
To arrive at this estimate, Hogan considered the market capitalizations of Bitcoin and Ethereum and projected investors' allocations to each asset. Exchange-traded funds (ETP) will increase proportionately.
Hogan noted that U.S. investors have already invested $56 billion in spot Bitcoin ETPs, and he expects this figure to reach more than $100 billion by the end of 2025.
Using this reference, he determined that a spot Ethereum ETF would need to raise $35 billion in assets to rival the Bitcoin ETF, a process that could take around 18 months.
Additionally, he said that following the conversion of the Grayscale Ethereum Trust (ETHE) into an ETF, a spot Ethereum ETF will be launched with $10 billion in assets.
At the time of writing, ETH is trading at $3,418, recording a significant loss of over 9% on a monthly basis.
Featured image from DALL-E, chart from TradingView.com
