Experts Predict Delay in Launch of Ethereum ETFs amid SEC Review
Crypto pundits are changing their bets on when Ethereum ETFs will launch, causing uncertainty in the industry. The hopes that spot Ethereum exchange-traded funds would launch this week are fading as industry watchers are not so certain that the Securities and Exchange Commission will green light the applications.
Eric Balchunas, a Bloomberg Intelligence analyst, previously predicted that the market watchdog would give a thumbs up before July 4. However, he has now pushed back his estimate to the week of July 8 after hearing that the regulator had asked prospective issuers to amend their applications.
This delay is a minor setback for an industry hoping that the launch of spot Ethereum ETFs would boost the market, similar to the impact spot Bitcoin ETFs had earlier this year. Despite this setback, Ethereum saw a 3% surge over the weekend and is currently trading at $3,450.
Bitwise’s Matt Hougan recently predicted that Ethereum exchange-traded products could attract $15 billion in net flows in their first 18 months on the market. However, on the crypto betting site Polymarket, punters have lowered the odds of a spot Ethereum ETF starting to trade by July 4 from 77% to just 4%.
The SEC has asked prospective issuers to address comments in their applications and resend them by July 8, according to an insider source. It is expected that there will be more rounds of back and forth between applicants and the SEC in the coming weeks.
Overall, the industry is eagerly awaiting the launch of Ethereum ETFs and hoping for a positive outcome from the SEC. Stay tuned for more updates on this developing story.
