In a significant development for the cryptocurrency market, Bloomberg’s Senior ETF Analyst, Eric Balchunas, has revised his expectations for the approval of Ethereum Exchange-Traded Funds (ETFs). Initially cautious, Balchunas now anticipates that the Securities and Exchange Commission (SEC) will approve these financial products by July 2.
Initial Insight: A Waiting Game
Balchunas’ earlier assessment, based on insider information, reflected a cautious stance. He noted that issuers of the Ethereum ETFs had submitted their registration statements (S-1s) to the SEC’s Division of Corporation Finance (Corp Fin) two weeks prior. However, these documents were only beginning to be reviewed. Balchunas commented:
“Makes sense. What I heard: issuers still waiting to get comments from Corp Fin on S-1s which they handed in 2 weeks ago. Corp Fin is just looking at these docs for the first time (why? because of the (highly likely) political last-minute 180 (remember they were as surprised by this as anyone else)). Unclear if they’re prioritizing this work but either way could be a bit. May need to push back my July 4th over/under but we’ll see.”
This statement highlighted the unexpected delay and the political maneuvering that seemed to catch even the regulatory body by surprise.
Updated Outlook: Approval on the Horizon
In a recent update via Twitter, Balchunas provided a more optimistic timeline. He indicated that the SEC staff had reviewed the S-1 forms and issued feedback to the ETF issuers, with the comments being relatively minor. He tweeted:
“We are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they’re pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next week and get it off their plate before the holiday weekend. Anything possible but this is our best guess as of now.”
This shift in Balchunas’ outlook suggests that the approval process is progressing more smoothly than initially expected, with a potential green light just before the Fourth of July holiday weekend.
Market Implications
The approval of Ethereum ETFs could mark a significant milestone for the cryptocurrency market, offering institutional and retail investors a regulated and familiar investment vehicle to gain exposure to Ethereum. This could enhance liquidity and potentially stabilize the often volatile crypto market.
Conclusion
While nothing is set in stone, Eric Balchunas’ revised prediction brings a sense of optimism to the cryptocurrency community. With the SEC’s feedback appearing manageable, the path to approval for Ethereum ETFs seems clearer. As the July 2 date approaches, investors and market participants will be keenly watching for the SEC’s final decision.
