Spot Ethereum ETFs: Bloomberg Analyst Sees Trading Start by July

ETFs

Bloomberg ETF analyst Eric Balchunas has revised his prediction, suggesting that spot Ether ETFs could start trading in the United States by July 2. In a post on X dated June 15, Balchunas mentioned that the U.S. Securities and Exchange Commission (SEC) had provided minimal feedback on the ETF applicants’ S-1 forms, requiring them to resubmit within the week.

“We are moving up our over/under date for the launch of spot Ether ETF to July 2nd,” Balchunas wrote. He added that there’s a “decent chance” the SEC will work to declare the ETFs effective the following week to clear them off their agenda before the July 4 holiday.

Balchunas noted that the SEC’s comments were “pretty light, nothing major,” which led to the revised prediction. He explained that this was his “best guess as of now,” indicating a turnaround in confidence from the previous day. On that day, he had mentioned that Ether ETF applicants were still awaiting feedback from the Division of Corporation Finance, a division of the SEC responsible for overseeing firm disclosures.

Initially, Balchunas was contemplating pushing back his prediction of a July 4 launch due to the pending feedback. However, the recent developments and the light nature of the SEC’s comments have led him to adjust his expectations to an earlier date.

In conclusion, Balchunas now believes that the launch of spot Ether ETFs in the U.S. is likely to occur before July 2, provided the SEC finalizes the applications promptly. This potential early launch is seen as a way for the SEC to address these applications ahead of the Independence Day holiday.

On May 23, the SEC approved eight 19b-4 filings to list spot Ether ETFs on various U.S. exchanges. However, these ETFs cannot commence trading until they receive the necessary approvals for their S-1 registration statements.

Demand for Ethereum Climbs as ETFs Launch Nears

Recent on-chain data reveals a significant uptick in demand for Ethereum, driven primarily by permanent investors. This trend is highlighted by a marked increase in CryptoQuant’s Permanent Holders Inflows metric. These permanent holders, often referred to as “hodlers,” are investors who tend to hold onto their cryptocurrency assets for extended periods, weathering market volatility without easily liquidating their positions.

On Wednesday, June 12, these long-term investors collectively acquired 298,000 BTC, underscoring their growing interest and confidence in the market. The term “permanent holders” describes participants who have a high tolerance for market fluctuations and are committed to maintaining their positions over time.

CryptoQuant’s data suggests that this surge in acquisition is not merely a coincidence but a calculated move by institutional investors. These institutions are likely positioning themselves strategically in anticipation of the upcoming launch of Ethereum spot ETFs. The imminent availability of these ETFs is seen as a potential catalyst for significant market activity and investment opportunities.

The behavior of these permanent holders indicates a strong belief in Ethereum’s long-term value and potential. Their increased activity reflects a broader trend of accumulating assets ahead of key market events, such as the ETF launch. Institutions, with their substantial financial resources and market influence, are probably leading this charge, preparing to capitalize on the expected rise in Ethereum’s value once the ETFs become available.

This strategic positioning by institutional investors highlights the growing acceptance and integration of Ethereum into mainstream financial markets. As the launch date for the Ethereum spot ETFs approaches, the market is likely to see further increases in demand and investment from both individual and institutional investors.

In summary, the latest on-chain data points to a rising demand for Ethereum, particularly from long-term, resilient investors known as permanent holders. This trend is driven by a strategic accumulation of assets, likely by institutions, ahead of the anticipated launch of Ethereum spot ETFs. This development underscores the growing confidence in Ethereum’s future prospects and its increasing integration into the broader financial ecosystem.

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