Asset managers are eagerly anticipating the potential approval of the first U.S. ETFs directly investing in Ethereum by the Security and Exchange Commission. The deadline for updated paperwork and amended S-1s is set for July 8, with the possibility of additional rounds of filings. Despite minor questions from the SEC, asset managers like Steve Kurz from Galaxy Digital remain optimistic about the approval process.
While major asset managers such as BlackRock and Fidelity have pending filings for Ethereum ETFs, many issuers have yet to disclose their fund fees. This lack of transparency is a crucial step before trading can begin. Additionally, there is uncertainty about whether Ethereum ETFs will generate similar demand to spot Bitcoin ETFs, which have seen significant success since their launch in January.
Analysts have varied opinions on the potential impact of Ethereum ETFs on the market. Some believe that ETH prices may fall by as much as 30% following their launch, while others, like crypto research firm K33 Research, expect Ethereum to outperform Bitcoin in July. The firm sees ETFs as a catalyst for relative ETH strength as summer progresses and flows accumulate.
Despite the optimism surrounding Ethereum ETF approval, the market is facing challenges such as potential selling pressure from the distribution of nearly $9 billion worth of BTC related to the defunct Mt. Gox exchange. Ethereum prices have not shown positive momentum recently, with the asset falling 3% during Asian trading on Wednesday. ETH is currently down from its peak in 2024 and significantly lower than its all-time high in November 2021.
Overall, while asset managers are hopeful about the approval of Ethereum ETFs, there are lingering uncertainties and challenges that could impact the market in the coming weeks. It is essential for investors to closely monitor developments and market trends to make informed decisions regarding their investments in the cryptocurrency space.