Following the approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10, spot Ether ETFs are expected to receive approval in 2024. Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of approval by May. Balchunas has stated that the fate of Ether spot is closely tied to that of Bitcoin spot, and he has heard through back channels that spot Ether ETFs will likely be approved.
Digital asset lawyer Joe Carlasare also anticipates approval for spot Ethereum ETFs this year, but he believes the process may take longer than expected. According to Carlasare, the Securities and Exchange Commission (SEC) will attempt to establish a precedent that allows them to retain discretion in determining which digital asset ETFs can enter the market. He suggests that the SEC is aiming to deter applicants from filing ETFs for every major token.
Despite the uncertainty surrounding the timing of the launch, Balchunas estimates a 70% chance that spot ETH ETFs will be approved by May, the month when the SEC must make a final decision on several applications. Following the approval of spot Bitcoin ETFs, the price of Ether spiked 7.13% in 24 hours and is currently trading at $2521.
Carlasare predicts that spot ETH ETFs will not start trading until the third quarter of 2024. However, Hashdex, one of the spot Ethereum ETF applicants, expects the Ether products to begin trading as early as the second quarter. Prior to the SEC’s approval of spot Bitcoin, Valkyrie Funds’ chief investment officer Steven McClurg suggested that spot Ether and XRP ETFs would likely follow Bitcoin to the market.
Bloomberg ETF analyst James Seyffart is confident that the SEC will approve spot Ether ETFs, as the SEC implicitly accepted Ether as a commodity when it approved Ether futures ETFs in September. Several companies, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, are among the spot Ethereum ETF applicants awaiting SEC approval. The SEC must decide on these applications by specific dates in May, June, July, and August 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Steven McClurg, Joe Carlasare, James Seyffart, Eric Balchunas |
| Companies | ARK 21Shares, BlackRock, Bloomberg, Hashdex, VanEck, Invesco Galaxy, Fidelity, Cointelegraph, Valkyrie Funds, Grayscale, Securities and Exchange Commission (SEC) |
| Currencies | Bitcoin, Lido Staked Ether |
| Securities | None |
