Spot Ethereum-ETF Launch Date Announced

Senior Bloomberg exchange analyst Eric Balchunas has announced that trading of spot ETH-ETFs in the United States will commence on July 23.

Update: Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94

— Eric Balchunas (@EricBalchunas) July 15, 2024

“The SEC has finally reached out to issuers, asking them to return FINAL S-1 forms on Wednesday (including fees), and then request effectiveness on Monday after market close for a TUESDAY, July 23 LAUNCH,” the expert wrote.

He added that this will occur provided there are no “unforeseen last-minute issues.”

Balchunas’s information was confirmed by The Block sources within two potential issuers of Ethereum exchange-traded funds. One source specified that documents must be submitted by Wednesday at 5:30 PM EST (Thursday, 12:30 AM Kyiv/Moscow time).

In May, the SEC approved the 19b-4 forms from applicants, but regulatory approval of the S-1 is required to begin trading the products. Initially, market expectations suggested this would happen in June.

SEC Chairman Gary Gensler, during Senate hearings, mentioned a timeline of “sometime by the end of this summer,” but noted that the registration process is “going smoothly.”

In early July, Bitwise’s Head of Compliance, Katherine Dowling, confirmed that the company sees all signs of reaching the “home stretch” regarding the Ethereum-ETF.

Ironic and kinda funny 7/23 is right in the middle of the biggest bitcoin conf of the year, which @JSeyff will be at btw

— Eric Balchunas (@EricBalchunas) July 15, 2024

“Ironic and kinda funny that July 23 falls right in the middle of the biggest bitcoin conference of the year,” Balchunas noted.

The SEC approved the listing of exchange-traded funds based on the spot price of the first cryptocurrency in January. Total inflows into the products since launch have amounted to $16.11 billion. 

Analysts at Bernstein expect lower investor demand for ETH-ETFs. However, Steno Research projected a net inflow of $15-20 billion into future Ethereum funds within a year. Experts suggest this could lead to the cryptocurrency’s price rising to $6500.

The price of ether momentarily reached $3500 amid reports of the exchange products’ launch date. During a general market correction, quotes fell to the $3400 level.

Michael van de Poppe, founder of MN Trading, identified the launch of ETH-ETF as one of the catalysts for Ethereum’s leading growth in the new market cycle.