In one week, the United States Securities and Exchange Commission (SEC) would give the green light to the market launch of ether exchange-traded funds (ETFs) (ETH), the native token of the Ethereum network. There are several indications that this will happen and ETF specialists support that opinion. As BitcoinDynamic already reported, the SEC established that Friday, June 21, 2024 was the deadline for issuing companies to deliver the S-1 forms, a relevant document in terms of security and protection for investors. There are currently eight ether ETFs listed by the SEC from the following companies: VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy and BlackRock.
The eight ether ETFs with their names, ticker and exchange where they would operate. Source: ETFTrends. In that framework, The VanEck firm submitted to the SEC the form 8-A, which details information about the issuing company, the values and the risks of the investment. Although this initiative is part of the process that issuers of these financial instruments must comply with, Eric Balchunas, an analyst at the Bloomberg news agency, warned of an indication of what could happen within 7 days. He explained:
“VanEck just filed Form 8-A for its ETH spot ETF and this is just part of the process. However, it is worth noting that they submitted Form 8-A for bitcoin, 7 days before the launch. Consequently, July 2 is a good sign (due to the launch of ether ETFs).” Eric Balchunas, Bloomberg analyst.
This filing of Form 8-A by VanEck occurs at 7 days from the speculated date for the launch of ether ETFs.
For Balchunas, this is a temporary coincidence similar to what happened with bitcoin exchange-traded funds (BTC), in January 2024. The presentation of these documents was made just a week before their launch on the market. For his part, Jan VanEck, CEO of that firm, wrote in a publication on X: “Guess where I start my week?” The post is accompanied by an image where the portraits of the president of the United States, Joe Biden, and the head of the SEC, Gary Gensler, stand out.
Image shared by Jan VanEck on his X account. Source: Jan VanEck. In this regard, Balchunas added that “anything can happen.” “Of course, we will hear more soon.” This is not the first time that the analyst claims that ether ETFs would be launched on July 2.
What can happen to the price of ETH?
The ETH price could face a «busy» week. As July 2nd approaches, high volatility is expected in the market, both for ETH and the price of bitcoin (BTC). These rumors usually increase the trading volume of digital assets and can attract greater liquidity and more institutional investors. Furthermore, there is the possibility that the “news sale” event, which means that the price of ETH may experience a temporary drop on the day these ETFs are launched on the market. This is because some investors might sell their assets for quick profits, before the market adjusts to the new information. However, the medium and long-term outlook remains bullish. The approval or launch of these funds is expected to boost demand for ETH, which could lead its price to a new all-time high (ATH)which is $4,891 and was registered on November 16, 2021.