Newly-approved exchange-traded funds (ETFs) for spot Ethereum could potentially be available for trading by mid-June, according to industry analysts. The successful 19b-4 filings for spot Ether ETFs allow them to be listed on exchanges, and the next step is to obtain approved S-1 registration statements before trading can begin. Bloomberg ETF analyst James Seyffart predicts that the S-1 approvals could be granted in a “couple of weeks,” while fellow analyst Eric Balchunas believes a mid-June launch is possible. VanEck, one of the applicants, has already filed its amended S-1, and other applicants are expected to follow suit soon. However, there is a possibility that one of the SEC Commissioners could challenge the decision within the next 10 days. Despite this, it is unlikely that such a challenge will occur. Market expectations for spot Ether ETFs are optimistic, with Seyffart predicting they could attract about 20% of the flows seen by spot Bitcoin ETFs, while Balchunas offers a more conservative estimate of 10-15%. If spot Ether ETFs achieve even 20% of the net inflows accumulated by spot Bitcoin ETFs over the past four and a half months, they could amass a combined $2.66 billion in inflows. However, concerns have been raised about potential outflows from the Grayscale Ethereum Trust if investors shift their holdings to spot Ether ETFs. The trust currently holds over $11.3 billion in assets. On May 23, regulatory approval was granted to eight applicants, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Bitwise, and Invesco Galaxy. Only one ETF issuer, Hashdex, did not receive approval on that day. The approval of spot Ethereum ETFs in the United States could potentially trigger a substantial rally in the price of ETH, with some industry experts predicting a surge of up to 60%.
