According to Bloomberg ETF analyst Eric Balchunas, there is a possibility that spot Ether exchange-traded funds (ETF) could start trading in the United States by July 2. Balchunas mentioned in a post on X that the United States Securities and Exchange Commission (SEC) had provided minimal comments on the spot Ether ETF applicants S-1 applications, and requested them back within a week. He speculated that the SEC might work to declare them effective the following week to clear their plate before the holiday weekend, which includes the U.S. Independence Day celebration on July 4.
This update indicates a shift in confidence from the previous day when Balchunas suggested that Ether ETF applicants were still awaiting feedback from the SEC’s Division of Corporation Finance. The SEC had approved eight 19b-4 filings on May 23 to list spot Ether ETFs on various U.S. exchanges, but trading cannot commence until the S-1 registration statement approvals are received.
SEC Chair Gary Gensler has provided a broader timeframe for potential approval, suggesting that spot Ether ETFs might begin trading within the next three months by the end of September. This comes after Gensler previously stated that the approval speed would depend on how quickly issuers addressed SEC comments.
While some traders are optimistic that spot Ether ETFs could follow a similar trajectory to spot Bitcoin ETFs, not everyone shares the same optimism. Stephen Richardson of Fireblocks argued that spot Ether ETFs may not see the same initial inflow as spot Bitcoin ETFs due to the complexity in valuing Ethereum’s use cases. There is a lack of widespread consensus on effectively evaluating the utility of the Ethereum blockchain.
In related news, there is a debate surrounding the classification of ‘Bitcoin Layer 2s’ and their significance, highlighting the importance of understanding the distinctions between various blockchain technologies.