The cryptocurrency landscape is abuzz following the recent approval of 11 spot Bitcoin ETFs on January 10, 2024. This development has sparked anticipation for a likely approval of Ethereum’s spot ETFs later this year. Analysts, including Bloomberg ETF analyst Eric Balchunas, are optimistic about Ethereum’s prospects, estimating a 70% likelihood of approval by May.
Bitcoin ETFs have been given the green light, opening up new opportunities and innovations in the cryptocurrency market. Eric Balchunas, senior ETF analyst at Bloomberg, believes that the fate of Ether spot is closely tied to that of Bitcoin spot. Balchunas, who was previously cautious about approving spot Bitcoin ETFs, now holds an optimistic outlook for Ethereum. He suggests that spot Ether ETFs are likely to receive approval based on insights from industry insiders.
Joe Carlasare, a digital asset lawyer, also envisions Ethereum spot ETFs gaining approval this year, although the timeline may exceed initial expectations. Carlasare believes that the SEC may carefully shape a precedent for approving digital asset ETFs while retaining discretionary powers.
There are multiple Ethereum spot ETF applications, including those from VanEck, Ark 21Shares, and Hashdex, awaiting SEC decisions by the end of May. The final deadline for VanEck’s spot Ethereum ETF decision is May 23, 2024, which has heightened anticipation. Carlasare anticipates that Ethereum spot ETFs may not commence trading until the third quarter of 2024. However, Hashdex remains optimistic about an earlier timeline, suggesting that spot Ether products could begin trading as early as the second quarter. Following the approvals, Ether experienced a 3% price surge, surpassing $2500 for the first time since May 2022, reflecting around a 7% increase in the past 24 hours.
Several prominent financial institutions and asset management firms, including ARK 21Shares, BlackRock, Fidelity, Grayscale, Hashdex, Invesco Galaxy, and VanEck, have submitted applications for Ethereum spot ETFs. The SEC must make decisions on these applications by specific deadlines: VanEck by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, Invesco by July 5, Fidelity by August 3, and BlackRock by August 7.
The approval of spot Bitcoin ETFs has infused optimism into the cryptocurrency market, paving the way for Ethereum spot ETFs. Analysts and industry experts foresee favourable outcomes, with Eric Balchunas estimating a 70% chance of approval by May.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Joe Carlasare, Eric Balchunas |
| Companies | ARK 21Shares, BlackRock, Bloomberg, Hashdex, Ark 21Shares, VanEck, Invesco Galaxy, Fidelity, Grayscale |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
