Ethereum (ETH) price experienced a pullback after briefly crossing the $3,500 mark on Monday, falling back to the $3,400 support level on Tuesday. The delay stems from the SEC’s expected full approval of the Ethereum ETF applications, which has now been pushed back to July 8.
SEC Requests Revised Filing
Analysts had originally expected approval on July 2, but the SEC asked issuers to submit revised documents by July 8. Bloomberg ETF expert Erich Balchunas shared on social media that the SEC took more time to provide a response, resulting in an updated timeline. Balchunas said:
Sad to think we’ll have to postpone our over/under until the end of the holiday. It sounds like the SEC took more time to get back to ppl this wk (altho and the tweaks are very simple) and from what I hear the next wk is dead bc holiday = July 8th the process starts again and after that they will introduce
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SEC Chairman Gary Gensler previously indicated that Ethereum ETFs will likely receive approval “by the end of the summer.” The SEC is currently reviewing and approving the S-1 formsrepresenting the second step in the launch of Ethereum ETFs.
Despite the delay, asset managers remain hopeful that the SEC will clear the green light for applications for US Ethereum ETFs that invest directly. The Ether, expected in mid-July. A recent Bloomberg report highlighted the constructive dialogue between asset managers and the regulator.
Ethereum ETF Launches Near Centimeters
According to the report, the administrator’s response provided a few questions that issuers currently face. In May, the SEC approved a proposal by the exchange to list these products, which require separate approval for their introduction.
Steve Kurz, head of asset management at Galaxy Digital, predicted the approval of the Ethereum ETF within the next few weeks. Galaxy Digital applied for the Ether ETF, and Kurz expressed confidence in the process, emphasizing their familiarity with the requirements based on their experience with Bitcoin ETF.
Several prominent firms, including BlackRock Inc., Fidelity Investments, 21Shares, and Invesco, have applications pending approval. Disclosure of fees to relevant funds is a necessary step before trading can begin.
Assuming that the funds get the green light, one main question remains: Will Ether portfolios create the same level of demand as the historic debut of US spot-Bitcoin ETFs in January, which accumulated $52 billion in assets?
$15 Billion in Revenue Within First 18 Months
As before report by NewsBTC, Ethereum ETFs may attract significant inflows in the first few months of trading, although they may not have the same volume of inflows as the recently approved Bitcoin ETF market.
In a letter to investors Bitwise’s Chief Investment Officer (CIO), Matt Hougan predicted that these ETFs could see $15 billion in revenue during their first 18 months of trading.
To arrive at this estimate, Hougan analyzed the market capitalization of Bitcoin and Ethereum, expecting investors to split their differences. products for sale (ETPs) equally.
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Hougan revealed that American investors have already invested $56 billion in Spot Bitcoin ETPs, and he expects this figure to reach $100 billion or more by the end of 2025.
Using this reference, he determined that Spot Ethereum ETFs would need to attract $35 billion to match Bitcoin ETFs, a process that would take about 18 months.
In addition, he noted that the Spot Ethereum ETF will launch with 10 billion assets, thanks to the conversion of the Grayscale Ethereum Trust (ETHE) into an ETF.
At the time of writing, ETH is trading at $3,418, recording a significant monthly loss of up to 9%.
Featured image from DALL-E, chart from TradingView.com
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