The launch of spot Ethereum exchange-traded funds (ETFs) in the United States, anticipated to occur by July 2, has faced a setback. New information suggests that the launch might be delayed until the week of July 8, as revealed by Bloomberg analyst Eric Balchunas on social media. The US Securities and Exchange Commission (SEC) returned the S-1 forms to potential Ethereum ETF issuers this week, with minimal comments. This delay may be due to the time taken by the SEC to provide feedback and the upcoming holidays next week, which might cause a further delay in the launch of the ETFs.
Experts initially predicted that the Ethereum ETFs linked to the spot price of ETH might be approved before July 4, based on VanEck’s submission of a Form 8-A filing for its Ethereum ETF. However, the delay in the launch may have been caused by certain applicants’ lapses or the staff’s summer hours affecting the process. Despite the delay, market experts believe that the funds could attract significant investment once trading begins. Charles Yu, Vice President of Research at Galaxy Digital, speculates that ETH ETFs could see up to $1 billion in monthly inflows during the first five months, based on trends in futures markets and international crypto funds.
Yu’s projection suggests that the ETFs could attract over $11 billion in their first year of trading, with Bitwise CIO Matthew Houang also predicting $15 billion in inflows within the first 18 months. However, Yu also highlights potential factors that could impact ETF demand, including the lack of staking, the unwinding of Grayscale’s ETHE, and the funding rate for Ethereum ETFs. Despite these potential challenges, the overall outlook for the Ethereum ETFs remains optimistic, with market experts expecting substantial interest from investors once trading commences.
In light of the delays and uncertainties surrounding the launch of Ethereum ETFs, investors and market participants are advised to stay informed and verify facts independently before making any investment decisions. It is important to consult with a professional before acting on any information provided in this article. BeInCrypto remains committed to unbiased and transparent reporting, providing accurate and timely information to its readers. Please refer to the updated Terms and Conditions, Privacy Policy, and Disclaimers for more information on the guidelines followed by BeInCrypto in reporting news.
