TL;DR
- BlackRock’s ETF Application: BlackRock amends its application for an Ethereum ETF, with analysts predicting a U.S. launch by late June, following SEC’s preliminary approval.
- Analysts’ Predictions: Bloomberg analysts foresee a potential end-of-June launch for spot Ethereum ETFs, with July 4th as a cautious over/under the date for final approval.
- Market Implications: The anticipated Ethereum ETFs could boost ETH’s price and signify Wall Street’s endorsement of Web3, while also expanding the crypto investment product landscape.
BlackRock, the world’s largest asset manager, amends its application for an Ethereum ETFs (exchange-traded fund). Analysts are now predicting that the United States could see the launch of spot Ethereum ETFs by late June.
BlackRock’s recent update to its Form S-1 filing for the iShares Ethereum Trust (ETHA) marks a pivotal step toward the ETF’s approval and start trading. The Securities and Exchange Commission (SEC) had previously greenlit BlackRock’s 19b-4 filing, setting the stage for the ETF’s introduction.
The revised S-1 form reflects ongoing engagement between issuers like BlackRock and the SEC, signaling that the launch of spot Ethereum ETFs is imminent. Bloomberg’s ETF analyst, Eric Balchunas, expressed optimism about the development, viewing it as a harbinger of other filings to come.
Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th https://t.co/WymshkTvat
— Eric Balchunas (@EricBalchunas) May 29, 2024
Balchunas anticipates a potential end-of-June launch, though he cautiously maintains July 4th as the over/under date for approval. James Seyffart, another Bloomberg ETF analyst, echoed this sentiment, noting that BlackRock’s updated S-1 form demonstrates the necessary issuer-SEC engagement for progress.
The amendment detailed a $10 million share purchase by a BlackRock affiliate on May 21, 2024, acquiring 400,000 shares at $25.00 each. In a surprising turn, Hashdex, another contender for a spot Ether ETF, withdrew its application following the SEC’s nod.
Potential Impact of Ethereum ETFs on Market Price and Crypto Investment Landscape
Sources indicate that Hashdex is shifting focus away from pursuing a single asset Ether ETF. The anticipated approval of Ethereum ETFs is expected to catalyze ETH’s price, with many viewing it as a Wall Street endorsement of Web3’s growth.
Contrarily, there are concerns about potential price pressures stemming from the Grayscale Ethereum Trust (ETHE) as it converts and its discount narrows, potentially leading to significant daily outflows.
The recent Ethereum ETF approvals have also broadened the horizon for crypto investment products. TD Cowen’s Washington Research Group was taken aback by the swift approval, which followed the earlier sanctioning of Bitcoin ETFs.
Jaret Seiberg of TD Cowen suggested that the Ethereum ETF nod came six months ahead of schedule but was foreseeable post-SEC’s approval of crypto futures ETFs. Moreover, the approval of spot ETH ETFs may affirm Ether’s classification as a non-security, a status long debated within the industry.
BlackRock’s amended S-1 filings and the SEC’s recent approvals underscore a burgeoning acceptance of cryptocurrency within the regulatory framework. With shares of the iShares Ethereum Trust set to trade under “ETHA,” the stage is set for a transformative period in crypto investment, potentially beginning as early as July 4th, according to Balchunas’s projections.
