The recent setback in Ethereum (ETH) price, dropping back to the $3,400 support level after briefly surpassing $3,500, was primarily influenced by the delay in SEC approval for Ethereum ETF applications. The expected approval date was initially set for July 2 but has now been postponed to July 8. This delay has caused speculation and uncertainty within the crypto community and the market as a whole.
SEC Approval Postponed
The SEC’s decision to postpone the approval of Ethereum ETF applications has raised concerns among analysts and investors. The additional time taken by the SEC to provide feedback on the filings has led to a revised timeline for approval. This delay has pushed back the expectations for the launch of the ETFs, creating a sense of anticipation and speculation in the market.
Optimism Amid the Delay
Despite the setback, asset managers remain optimistic about the eventual approval of the Ethereum ETFs. The constructive dialogue between asset managers and the regulator, as highlighted in a recent Bloomberg report, indicates that there is a positive outlook for the approval process. Many prominent firms, including BlackRock Inc., Fidelity Investments, and Invesco, have filings awaiting approval, showing a strong interest in Ethereum ETFs.
Various experts in the field have made predictions about the potential success of Ethereum ETFs once approved. Steve Kurz, head of asset management at Galaxy Digital, expressed confidence in the approval process, citing their experience with the Bitcoin ETF. Other analysts, like Bitwise’s Chief Investment Officer Matt Hougan, have projected significant inflows into Ethereum ETFs within the first 18 months of trading. These projections indicate a positive outlook for the future of Ethereum ETFs once they are approved.
The comparison between Ethereum and Bitcoin ETFs raises questions about the level of demand for Ethereum ETFs compared to the historic debut of US spot-Bitcoin ETFs. While Ethereum ETFs are expected to attract significant inflows, it remains to be seen if they will match the level of demand seen by Bitcoin ETFs. The performance of Ethereum ETFs in the market will provide valuable insights into investor sentiment and interest in Ethereum as an investment asset.
The delay in SEC approval for Ethereum ETFs has introduced a new level of uncertainty and anticipation in the crypto market. While the setback has caused a drop in Ethereum price, there is still optimism among asset managers and investors regarding the eventual approval of the ETFs. The projections and predictions made by experts indicate a positive outlook for the future of Ethereum ETFs once they are launched. As the market awaits the approval of Ethereum ETFs, it will be interesting to see how they perform and whether they can match the success of Bitcoin ETFs in the US market.
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