On Monday, June 17, 2024, Ethereum (ETH) experienced a slight decline in value, currently trading at $3,530, marking a 1% decrease in the past 24 hours. Renowned Bloomberg ETF expert, Eric Balchunas, has hinted that spot Ether ETFs might hit the market as early as July 2, causing a stir in the financial world.
In the midst of ETH’s price fluctuations, Coinglass, an analytics platform, reported a staggering $11 million worth of long positions being liquidated, contributing to the recent market volatility. Furthermore, Ethereum’s open interest has skyrocketed to a record-breaking $15 billion, indicating a significant number of outstanding options contracts, hinting at a period of intense speculation.
The potential launch of Spot Ether ETFs has drawn parallels to the historical surge in Bitcoin prices following the introduction of similar financial products. However, a recent analysis by JPMorgan suggests that Ether ETFs may only attract between $1 billion and $3 billion in investments, a mere fraction compared to the $15 billion amassed by equivalent Bitcoin ETFs.
The all-time high price of ETH was reached on November 10, 2021, when the cryptocurrency was valued at nearly US$4,880. To surpass this milestone, Ethereum would need to appreciate by almost 28% from its current trading price.
In a recent post on X (formerly Twitter), Balchunas revealed that the U.S. Securities and Exchange Commission (SEC) is in the final stages of approving ETH ETFs. He mentioned that the SEC is currently reviewing the S-1 registration statements of the eight Ether ETF candidates, with an expected release date of July 2.
“Staff members have provided feedback on the S-1s to issuers today, and the comments are relatively minor, requesting responses within a week. There is a good chance that they will be declared effective next week and removed before the holiday weekend,” Balchunas stated.
SEC Chairman, Gary Gensler, confirmed during a U.S. Senate hearing that approvals for S-1 registration statements will be granted “throughout this summer,” lending credibility to Balchunas’ forecasts.
Disclaimer: The opinions expressed in this article are solely for informational purposes and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries inherent risks of financial loss.
Editor’s Choice: The Expected Approval Date for Ethereum ETFs Could Potentially Be July 2nd. Additionally, Ethereum whales seize the opportunity presented by the market dip, purchasing a substantial $840 million worth of ETH, leading to a surge in its value today.