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>>Upcoming Spot Ether ETFs could potentially debut by mid-June, according to industry experts.

Upcoming Spot Ether ETFs could potentially debut by mid-June, according to industry experts.

crypthub

1/24/2025, 11:50:16 AM

Ethereum Spot ETF Approvals and Market Projections

Nightly-approved Ethereum (Ether) exchange-traded funds (ETFs) are set to enter the market by mid-June, following successful 19b-4 filings. The next crucial step is obtaining S-1 registration statements, which could be approved within weeks, according to analysts. This potential timeline would enable a June launch, similar to the speed seen with Bitcoin ETFs.

Applicant Actions and Legal Considerations

Applicants like VanEck have swiftly filed amended S-1s post-approval for 19b-4 filings. Other applicants are expected to follow this procedure shortly. However, Gabriel Shapiro from Delphi Labs notes a potential challenge within 10 days, though Joe Carlasare believes it unlikely given the SEC's approval through its trading and markets division.

Market Expectations and Potential Impact

Analysts have differing views on market share projections for spot Ether ETFs. James Seyffart predicts they could capture 20% of Bitcoin ETF flows, while Eric Balchunas offers a more conservative estimate of 10-15%. At the current rate, Bitcoin ETFs have seen $13.3 billion in net inflows since launch, suggesting potential inflows of around $2.66 billion for spot Ether ETFs over a similar period if they capture 20% market share.

Asset Shifts and Regulatory Approval

There are concerns about potential outflows from the Grayscale Ethereum Trust to spot Ether ETFs, mirroring Bitcoin ETF conversion outflows. Eight applicants were approved on May 23rd, including major firms like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Bitwise, and Invesco Galaxy. Hashdex did not receive approval that day. QCP Capital predicts a significant ETH price surge of up to 60% upon U.S. ETF approval, citing Bitcoin's post-ETF launch price increases as evidence.