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Ether ETF Highly Likely to Debut This Week: Latest from Analysts

DailycoinDailycoin2024/07/16 06:04
By:Dailycoin
  • ETF Store President Nate Geraci has suggested that the moment of truth for ether ETFs will come this week.
  • The call follows a period of silence from the SEC.
  • As anticipation builds, market observers continue to question how ETFs will impact ether’s price.

Over the years, the SEC has built a reputation for taking its sweet time with crypto ETF decisions. Despite recent approvals, this pattern has yet to break.

In May 2024, the agency made the landmark and largely shocking decision to approve a rule change to allow issuers to offer spot ether ETFs. Nearly two months after this move, however, these ETFs have yet to go live for trading as the regulator continues to drag its feet to approve registration statements called S-1 filings.

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As speculation and anticipation build, ETF Store President Nate Geraci has suggested that this week will offer the moment of truth.

Ether ETF S-1s To Get Greenlight This Week?

Wen ether ETF S-1 filings greenlight? ETF Store President Nate Geraci is betting on this week.

“Welcome to spot eth ETF approval week,” Geraci enthused in an X post on Sunday, July 14. Explaining the rationale behind this prediction, the analyst contended that there was no good reason for further delays. “Issuers ready for launch,” he added.

Geraci’s view appeared to gain the support of Bloomberg Senior ETF Analyst Eric Balchunas. In response to the ETF Store president’s X post, Balchunas shared a Vincent McMahon GIF with the caption, “LET’S GET READY TO RUMBELEEEE [rumble].”

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Geraci’s recent call aligns with his call at the beginning of last week, in which he anticipated S-1 approvals within two weeks. Last week, analysts, including Geraci, had noted that the SEC had been curiously quiet, opting to offer no response to S-1 amendments filed by issuers earlier in the week. At the time, Balchunas questioned the reason for the continued approval delays as, in his view, everything was ready.

Amid the wait for an ether ETF, crypto community members continue to speculate on how the launch would affect price, leading Bloomberg‘s Balchunas to weigh in.

Exciting Launch

When asked how spot ETFs were likely to affect ether’s price, Balchunas suggested that he had “no idea how price will react,” but indicated that their launch promised to be “exciting,” likening it to the Bitcoin ETF launch in January 2024 .

"Lol no idea how price will react but the launch will be exciting, as we once again have a true race w big boy and indie issuers alike likely all going out on same day," he wrote.

If the spot Bitcoin ETF launch is any indication, ether holders may have to wait a few weeks before the price implications of inflows to spot ETFs become apparent. Despite the January approval, Bitcoin did not enjoy a significant upswing till early March 2024 , when it revisited and surpassed previous all-time highs.

Regardless of how it plays out, at the time of writing, ether has enjoyed an over 4% rally over the past 24 hours to trade above the $3,300 price point. The rally comes as the broader crypto market appears to have shaken off jitters set off by Germany’s Bitcoin selling spree .

On the Flipside 

  • Unlike the rule change approved in May 2024, the SEC has no deadline to approve S-1 filings.
  • Even after S-1 approvals, ether ETFs will still need to go through a few steps before trading. 
  • Experts have contended that Bitcoin is likely to dominate spot ETF inflows.

Why This Matters 

Spot ETFs have been tipped to inject billions of dollars into the ether market, which could send the asset’s price soaring. Geraci’s statements add to the chorus of expert views that suggest that the launch of these products is near.

Read more on the ether ETF watch:
Ether ETFs “Close to the Finish Line”? Here’s What Comes First

Stay up to date with the latest in the Tigran Gambaryan detention saga:
Gambaryan a “Hostage”: U.S Lawmakers Escalate Calls for Release

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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