Analysts and sources at the SEC have suggested that Ethereum ETFs could potentially launch in July, sparking increased interest in Ether among traders who believe that the ETF approval will significantly boost its price. Despite these expectations, the SEC has been slow in its decision-making process, as recently revealed when the agency returned S-1 forms to the applicants, indicating that there are still at least two more stages to go.
When the Bitcoin ETF was launched earlier this year, it caught many in the financial industry off guard, especially since SEC Chair Gary Gensler had been known for his anti-crypto stance. This heightened anticipation for the next big thing in the market—the Ethereum ETF. However, the SEC’s delay has left the crypto market frustrated, with many hoping that the ETF approval will propel Ether beyond the $5,000 mark.
Currently, Ether is trading at $3,385, experiencing a slight dip over the weekend and a 3% loss in the past week. Despite some losses over the past month, Ether is still up by 48% since the beginning of the year.
Technical indicators for Ether suggest a potential decline in its price, with the 20-day and 50-day exponential moving averages positioned above $3,480. This typically signifies that the asset may be on the verge of losing value.
While analysts had initially speculated on a July launch for the Ethereum ETF, the recent setback from the SEC has pushed the approval timeline further out. The agency returned ten S-1 forms to the applicants with minor comments, requesting revisions by July 8. However, this is not the final step, as the SEC will require additional filings before granting approval.
Despite the hurdles, there remains optimism among some sources that the ETFs could be launched within the next 2-3 weeks once the final revisions are submitted. Bloomberg’s ETF specialist also predicts that there may be no significant progress from the SEC in the first half of July.
Gensler maintains his focus on protecting American investors and upholding the SEC’s principles, despite criticism of his anti-crypto stance. He has expressed confidence in the ETF approval process, dismissing concerns that his position could impact President Joe Biden’s reelection campaign, which has shown support for the crypto industry.