Ethereum Spot ETFs Could Begin Trading as Early as July 2

Crypto investors might soon gain access to Ethereum ETFs earlier than anticipated. Bloomberg ETF analyst Eric Balchunas has revised his forecast, predicting that these exchange-traded funds could start trading as soon as July 2.

This expedited timeline depends on the US Securities and Exchange Commission (SEC) completing its review of spot Ethereum ETF applications. Balchunas noted that the SEC's comments on the S-1 filings were minimal, asking for only minor adjustments. Issuers are expected to respond within a week.

“The Staff sent issuers comments on S-1s, and they’re pretty light, nothing major, asking for them back in a week,” explained Balchunas. “We are moving up our over/under date for the launch of spot Ether ETF to July 2 based on this development.”

Balchunas also speculated that the SEC might finalize the applications before the upcoming holiday weekend. “Anything is possible, but this is our best guess as of now,” he added.

Nate Geraci, President of ETF Store, shares this optimistic view. He believes the minor nature of the SEC’s comments indicates that most of the groundwork is complete, reducing the likelihood of significant delays.

This accelerated launch is quicker than SEC Chairman Gary Gensler previously suggested. During a Senate hearing on June 13, Gensler mentioned that Ethereum ETF approvals might occur over the summer but did not specify a date.

Spot Ethereum ETFs would allow investors to gain exposure to the second-largest cryptocurrency by market capitalization through a traditional investment vehicle. Proponents argue these ETFs will enhance market access and boost institutional adoption of Ethereum, similar to the impact of Bitcoin ETFs.

However, there are concerns about the potential demand for Ethereum ETFs compared to Bitcoin ETFs. The lack of staking capabilities, which some Bitcoin ETFs offer, might dampen investor enthusiasm for Ethereum products. Despite this, Geraci believes that the potential demand for these ETFs is likely underestimated.

While the final launch date is still uncertain, the SEC’s comments and the industry’s response suggest that July could be the month when investors finally access spot Ethereum ETFs. This development could significantly transform Ethereum investment and further legitimize the cryptocurrency industry.

The swift approval of Ethereum ETFs could also indicate a more favorable regulatory stance towards cryptocurrencies in the US, potentially boosting investor confidence and accelerating the mainstream adoption of Ethereum and other digital assets.