On Monday, June 17, 2024, Ethereum (ETH) is currently trading at $3,530, showing a 1% decrease in value over the last 24 hours. Bloomberg’s ETF expert, Eric Balchunas, anticipates that spot Ether ETFs could make their debut as early as July 2, potentially causing a stir in the market.
Amidst the fluctuations in ETH’s price, Coinglass, an analytics platform, revealed that $11 million worth of long positions were liquidated, contributing to the recent market volatility. Furthermore, Ethereum’s open interest has reached a significant milestone of $15 billion, indicating a high number of outstanding options contracts and hinting at a climate of intense speculation.
The prospect of launching Spot Ether ETFs has drawn parallels to Bitcoin’s historical surge following the introduction of similar products. Nevertheless, a recent analysis by JPMorgan suggests that Ether ETFs may attract between $1 billion and $3 billion in investments, a fraction compared to the $15 billion amassed by equivalent Bitcoin offerings.
The highest recorded price of ETH dates back to November 10, 2021, when the cryptocurrency was valued at nearly US$4,880. To surpass this milestone, Ethereum would need to appreciate by almost 28% from its current price.
In a recent statement on X (formerly Twitter), Balchunas highlighted the U.S. Securities and Exchange Commission (SEC) finalizing the approval process for ETH ETFs. He noted that the SEC is reviewing the S-1 registration statements of eight Ether ETF candidates, with an anticipated release date of July 2.
“Today, Staff sent comments to issuers on the S-1s, which were relatively minor, and requested responses within a week. There is a high likelihood that they will be declared effective next week and subsequently removed before the holiday weekend,” Balchunas stated.
SEC Chairman Gary Gensler confirmed during a U.S. Senate hearing that S-1 registration statement approvals would occur “throughout this summer,” lending credibility to Balchunas’ predictions.
Disclaimer: The opinions expressed in this article are solely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading in cryptocurrencies carries inherent risks of financial loss.
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