On Monday, June 17, 2024, Ethereum (ETH) saw a slight decline in value, trading at $3,530, marking a 1% drop in the last 24 hours. Bloomberg’s ETF specialist, Eric Balchunas, has hinted that spot Ether ETFs may hit the market as soon as July 2, causing a stir in market predictions.
In light of ETH’s price fluctuations, Coinglass analytics platform reported that $11 million in long positions were liquidated, contributing to the recent market volatility. Moreover, Ethereum’s open interest has hit a significant milestone of $15 billion, indicating a large number of outstanding options contracts, suggesting a period of intense speculation.
The potential launch of Spot Ether ETFs has drawn comparisons to the historical surge in Bitcoin prices that followed the introduction of similar products. However, a recent analysis by JPMorgan suggests that Ether ETFs could attract between $1 billion to $3 billion in investments, a fraction of the $15 billion amassed by comparable Bitcoin products.
The highest price of ETH was recorded on November 10, 2021, when the cryptocurrency traded close to US$4,880. To surpass this milestone, Ethereum would need to appreciate by nearly 28% from its current price.
In a recent statement on X (formerly Twitter), Balchunas disclosed that the U.S. Securities and Exchange Commission (SEC) is in the final stages of approving ETH ETFs. He mentioned that the SEC is reviewing the S-1 registration statements of the eight Ether ETF candidates, with expectations for release on July 2.
“Staff sent comments to issuers on the S-1s today, and they are quite minimal, nothing major, requesting responses within a week. There is a good chance they will aim to declare them effective next week and remove them before the holiday weekend,” Balchunas stated.
SEC Chairman Gary Gensler confirmed during a U.S. Senate hearing that S-1 registration statement approvals would be issued “throughout this summer,” lending credibility to Balchunas’ forecasts.
Disclaimer: The opinions expressed by the author, or any individuals mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies involves a risk of financial loss.
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