On Monday, June 17, 2024, Ethereum (ETH) experienced a decline in value, with the current trading price at $3,530, marking a 1% decrease in the past 24 hours. According to Bloomberg ETF expert Eric Balchunas, there is a possibility of launching spot Ether ETFs as early as July 2, which could have a significant impact on market expectations.
Amidst ETH’s price fluctuations, analytics platform Coinglass reported that $11 million worth of long positions were liquidated, contributing to the recent market volatility. Furthermore, Ethereum’s open interest has reached a milestone of $15 billion, indicating a large number of outstanding options contracts, hinting at a scenario of heightened speculation.
The potential launch of Spot Ether ETFs has drawn parallels to the historical surge in Bitcoin prices following the introduction of similar products. However, a recent analysis by JPMorgan suggests that Ether ETFs may attract between $1 billion and $3 billion in investments, significantly less than the $15 billion amassed by equivalent Bitcoin products.
The highest recorded price of ETH dates back to November 10, 2021, when the cryptocurrency was valued at close to US$4,880. To surpass this peak, Ethereum would need to appreciate by nearly 28% from its current price.
In a recent statement on X (formerly Twitter), Balchunas mentioned that the U.S. Securities and Exchange Commission (SEC) is in the final stages of approving ETH ETFs. He noted that the SEC is reviewing the S-1 registration statements of the eight Ether ETF candidates, with expectations of their release on July 2.
Balchunas stated, “Hearing Staff sent comments to issuers on the S-1s today, and they are pretty light, nothing major, asking them back in a week. Good chance they will work to declare them effective next week and remove them before the holiday weekend.” SEC Chairman Gary Gensler confirmed during a U.S. Senate hearing that S-1 registration statement approvals would take place “throughout this summer,” lending credibility to Balchunas’ forecasts.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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