Spot Ether ETFs Eye Clear Approval Path in 2024, Predicts a 70% Chance by May
Summary:
Following the approval of 11 Bitcoin ETFs, analysts predict a clear path to approval in 2024 for spot Ether (ETH) ETFs, with a 70% chance of approval by May. Market insiders suggest the authorization of Ether ETFs likely, though the launch timeline remains uncertain. Among the hopefuls for approval are BlackRock, VanEck, ARK 21Shares, Grayscale, Hashdex, Fidelity, and Invesco Galaxy with the SEC decision-making deadlines ranging from May to August 2024.
Following the approval of 11 Bitcoin (BTC) exchange-traded funds on January 10, forecasters predict spot Ether (ETH) ETFs could have an unimpeded road to approval in 2024, with a 70% likelihood of authorization by May, according to one analyst. Eric Balchunas, a Bloomberg ETF analyst, expressed previously to Cointelegraph his belief that there can't be a reality where spot Bitcoin ETFs are sanctioned, but Ethereum ones are not, implying that the status of Ethereum is inherently linked to Bitcoin's movements.
Insider reports suggest the green lighting of spot Ether ETFs is a sure thing. Upcoming decision-making deadline for VanEck's spot ETH ETF draws greater attention - May 23rd.
Simultaneously, digital asset lawyer Joe Carlasare has predicted the approval of spot Ethereum ETFs in 2024, though he foresees the process taking a bit longer than anticipated. The SEC is expected to outline a precedent that provides them the discretion to decide which digital asset ETFs can be introduced to the market. Essentially, the SEC aims to discourage applicants from applying for ETFs for every significant token.
Balchunas projects a 70% probability of spot ETH ETFs getting the go-ahead by May, corresponding with the SEC's final decision deadline for various applications, although he can't pinpoint when they will start trading. In the aftermath of the Bitcoin ETFs approval, Ether saw a price surge of 7.13% in 24 hours, with its value currently sitting at $2521.
Carlasare predicts spot ETH ETFs may not kick off trading until the third quarter of 2024, though there are differing predictions with some applicants such as Hashdex who expect the Ether products to commence trading as early as Q2. Before the SEC approved spot Bitcoin, Valkyrie Funds' CIO, Steven McClurg expressed his belief that both spot Ether and XRP ETFs would follow Bitcoin's lead.
Another confident voice at Bloomberg, ETF analyst James Seyffart, believes that Ether will get the nod from the SEC, as the approval of Ether futures ETFs in September suggests that the SEC tacitly acknowledges Ether as a commodity.
Among the contenders for the SEC approved spot Ethereum ETFs are BlackRock, VanEck, ARK 21Shares, Grayscale, Hashdex, Fidelity, and Invesco Galaxy. The SEC has set deadlines for decision-making on applications: VanEck by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, and Invesco by July 5, 2024. Fidelity and BlackRock's applications are set to be decided by August 3 and August 7 respectively.
Published At
1/11/2024 1:02:34 AM
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