Analysts believe Ethereum Exchange Traded Funds (ETFs) (ETHs) have a “legitimate possibility” of launching in late June, after BlackRock updated a key file required for launch.
An encouraging sign
On May 29, BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission (SEC), almost a week after the regulator approved its File 19b-4 – both necessary for the ETF to begin trading. “It’s an encouraging sign. [Probably] see the rest follow soon,” said Bloomberg ETF analyst Eric Balchunas. This update suggests progress towards the launch of the Ethereum ETF and fuels expectations of further similar developments in the near future.
Possible launch in June
According to Balchunas, there will probably be another round to “fine-tune” the SEC’s comments, but a late June launch is “a legitimate possibility.” However, Balchunas maintained his probabilities of approval at around July 4, adding that earlier approval would be “a fluke”. Bloomberg ETF analyst James Seyffart said BlackRock’s S-1 update is “almost certainly the commitment we’ve been waiting for” as it shows that “issuers and the SEC are working together for Ethereum ETF launches”.
Implications for the future
The implications for the future of Ethereum are significant. Ethereum ETFs could lead to an increase in Ethereum’s value, as some speculate that Wall Street will use the ETF as a bet on Web3’s growth. Others speculate that Ethereum could face price pressure as the Ethereum Grayscale trust could be sold. In addition, the approval of these ETFs could attract new institutional investors to the cryptocurrency.
