Asset Managers Optimistic About Ethereum ETF Approval
Asset managers are hopeful that the Security and Exchange Commission (SEC) will approve the first U.S. ETFs directly investing in Ethereum. The approval could potentially happen by mid-July.
- The SEC has set a deadline of July 8 for ETF applicants to submit updated paperwork and amended S-1s.
- Potential additional rounds of filings may be required after the July 8 deadline, as reported by Bloomberg.
Ethereum ETF Hopefuls
Recent feedback from the SEC to issuers has mainly involved minor questions that are currently being addressed. Steve Kurz, the head of asset management at Galaxy Digital, believes that an Ether ETF could be approved within the next few weeks.
“This is window-dressing, the SEC is engaged. We’ve been doing this for months now. We did it for the Bitcoin ETF, the products are substantially similar – we know the plumbing, we know the process.”
- Major asset managers like BlackRock, Fidelity, Ark 21Shares, and Invesco have pending filings for Ethereum ETFs.
- Many issuers have yet to disclose their fund fees, a necessary step before trading can begin.
- It remains uncertain if Ethereum ETFs will attract the same demand as spot Bitcoin ETFs, which have accumulated $52 billion in assets since January.
Price Decline for Ethereum
Ethereum prices are currently experiencing a decline without any positive momentum. The asset dropped 3% to an intraday low of $3,342 during Asian trading on Wednesday.
- Although Ethereum reached a ten-day high of over $3,500 earlier this week, it followed the overall trend of the crypto market in failing to break resistance and subsequently retreated.
- ETH is currently down 17% from its 2024 peak of just over $4,000 and 31% from its all-time high in November 2021.
Hot Take: Potential Impact of Ethereum ETF Approval on Prices
As the crypto community awaits the potential approval of Ethereum ETFs by the SEC, there is much speculation about how this could impact the price of ETH. The launch of Ethereum ETFs could have both positive and negative consequences for the cryptocurrency:
- Elevated Expectations: Approval of Ethereum ETFs could signal increased institutional interest in ETH, potentially leading to a surge in demand and price.
- Volatility Concerns: On the flip side, the launch of ETFs may also introduce a level of volatility to Ethereum prices, with some analysts predicting a potential 30% drop post-launch.
By
By
By
By
By
By