Top ETF Analyst Expects Wave of Amended ETH ETF Filings Today, Eyes SEC Approval by July 2nd

On Jun 21, 2024

Bloomberg ETF analyst Eric Balchunas has indicated that a significant number of amended S-1 filings for Ethereum-based Exchange Traded Funds (ETFs) are expected to be submitted today. As a result, the Securities and Exchange Commission (SEC) is set to review these amendments, with the potential final approval setting the launch of ETH ETFs by July 2nd.

Fidelity Files Updated S-1 Registration

The wait for the launch of spot Ethereum ETF might end soon as a prominent Bloomberg analyst, Eric Balchunas, expect potential approval by 2^nd July. In a recent tweet, the analyst revealed that today could see several updated S-1 filings for Ethereum-based Exchange Traded Funds (ETFs).

The submission of these amended filings is key to getting the green light from U.S. regulators. If approved, these would be the first American ETFs directly linked to Ethereum, attracting more institutional investors. Eric expects a potential for ETH ETF by July 2.

Also read: Ethereum DeFi Sector Poised for Strong Growth, Says Legendary Analyst

Recent reports suggest that Fidelity has filed its updated S-1 form and they haven’t shared any fee details for their ETF yet. Right now, Franklin is the only issuer that has announced a fee, which is 19 basis points. Other big ETF issuers, like Bitwise, haven’t disclosed their fees either. It seems like many are waiting to see what BlackRock will charge, as their fees could be a standard for everyone else to aim for.

Fidelity kicking off the the S-1-athon. No fee included yet tho (Franklin only one w fee so far at 19bps). Bitwise didn’t include either. Everyone likely waiting till last min and/or on BlackRock to disclose to see what they need to orbit around. https://t.co/vGCY2mnqBr
— Eric Balchunas (@EricBalchunas) June 21, 2024

In Bitwise’s updated filing, they disclosed that asset manager Pantera Capital intends to purchase $100 million worth of the ETF shares upon its launch. This announcement came after the SEC commented on initial S-1 filings from issuers last week.

However, many analysts are confident that the ETH ETF will launch without any issues from the SEC. The reason behind this is that the regulatory body recently concluded its investigation into Ethereum, aiming to classify it a security.

Consensys noted that while this significant victory is important, it doesn’t address all the challenges faced by blockchain developers and others impacted by the SEC’s strict crypto enforcement.

Will ETF Launch Impact ETH Price?

According to analysts at QCP Capital, ETH’s implied volatility (IV) climbed to 59% in the short term after its price bounced back following recent events. Implied volatility is a gauge of how much the market predicts an asset’s price will fluctuate over time.

The analysts also noted that even with some uncertainty about how the ETH ETFs will be received, if they manage to attract 10-20% of the flows seen with BTC ETFs, it could push their prices above $4,000, close to their highest peak of $4,800. However, the impact on ETH price can be observed over an extended period just like Bitcoin.

Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs. However, issuers must still wait for their S-1 statements to be declared effective before trading can start.