According to Bloomberg’s ETF analyst Eric Balchunas, there is a possibility that spot Ether exchange-traded funds (ETF) may start trading in the United States by July 2. In a post on X dated June 15, Balchunas mentioned that the United States Securities and Exchange Commission (SEC) had provided minimal feedback on the spot Ether (ETH) ETF applicants S-1 applications and requested them back within the week. He speculated that the SEC might work to declare them effective the following week to clear their plate before the holiday weekend, referring to U.S. Independence Day on July 4.
This update marks a shift in confidence from the previous day when Balchunas had expressed uncertainty about the feedback from the Division of Corporation Finance, a division of the SEC responsible for overseeing firms disclosures, prompting him to consider revising his prediction for July 4.
On May 23, the SEC approved eight 19b-4 filings for spot Ether ETFs to be listed on various U.S. exchanges. However, trading cannot commence until they receive the necessary S-1 registration statement approvals.
SEC Chair Gary Gensler has suggested a potential timeframe for the commencement of spot Ether ETF trading within the next three months, possibly by the end of September. Gensler had previously stated that the speed of Ether ETF approvals would depend on how quickly issuers could address SEC comments.
While some traders are optimistic about Ether’s price following the approval of spot Bitcoin ETF on Jan. 11, which led to record highs of $73,679 by March 13, not everyone shares the same confidence. Stephen Richardson, managing director of financial markets at Fireblocks, argued on June 3 that spot Ether ETFs may not experience the same initial inflow as spot Bitcoin ETFs due to the challenges in valuing the asset’s use cases.
Richardson highlighted the lack of consensus on evaluating the utility of the Ethereum blockchain. He emphasized the difficulty in determining the utilization rate of the blockchain, indicating a potential hurdle for spot Ether ETFs.