Ethereum Spot ETF Might Launch as Early as Mid June - Bloomberg Analyst

Newly-approved spot Ethereum exchange-traded funds (ETFs) could potentially hit the market by mid-June, according to Bloomberg ETF analyst Eric Balchunas. 

The anticipated launch follows the approval of several 19b-4 filings and the subsequent filing of amended S-1 forms by ETF issuers like VanEck. VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock have received approval from the regulator for their Nasdaq, NYSE Arca, and Cboe BZX listings.

However, there is a potential hurdle. Gabriel Shapiro, general counsel at Delphi Labs, highlighted that the SEC’s approval was made by its Division of Trading and Markets under "delegated authority." This means one of the five SEC Commissioners could challenge the decision within 10 days.

Meanwhile, ETF analyst James Seyffart noted that decisions made with delegated authority are common and that requesting a review would likely not change the outcome.

Market Impact and Expectations

The ETFs could attract a significant amount of institutional capital if they are approved for trading. According to Standard Chartered, inflows will reach $45 billion in the first year.

Bloomberg Analyst James Seyffart predicts that spot Ether ETFs could attract about 20% of the flows seen by spot Bitcoin ETFs. Balchunas offers a more conservative estimate of 10-15%. 

Since the launch of spot Bitcoin ETFs around four and a half months ago, they have accumulated $13.3 billion in net inflows, according to SoSoValue Crypto. Even capturing a fraction of this market could signify substantial inflows for Ethereum ETFs.

The SEC approved eight of the 19b-4 filings submitted after weeks of anticipation. However, these funds still need to pass another stage of scrutiny for the S-1 documents to be reviewed. This additional step is crucial for the final launch of the ETFs.

VanEck already filed its amended S-1 after having its 19b-4 approved, and other applicants are expected to follow suit soon.