The approval of Ethereum spot ETF is expected to boost market confidence

As major issuers update their S-1 documents, market expectations for the approval of the Ethereum spot ETF before July 18 have increased significantly. This development includes not only updated filings from BlackRock and others, but Bloomberg analysts also predict that final approval of these ETFs may be imminent. Affected by this, the price of Ethereum has risen by more than 5% in the past 24 hours.

While some potential issuers such as Grayscale and 21Shares have not disclosed fee details in their updated filings, and the Invesco Galaxy Ethereum ETF has yet to file a Form S-1 update, the ETF Store President Nate Geraci expects updates to the Invesco Galaxy to be made public soon.

At the same time, Bitwise also updated its S-1 filing to announce a six-month fee reduction plan of up to $500 million. However, Bitwise’s form did not specify an exact release date. The company said only that this would happen "as soon as possible" after the effective date of registration.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, commented on the recent filing. He said that the SEC has required the submission of S-1 documents by July 8, but issuers currently do not need to pay fees, and it is expected that the SEC will provide further guidance soon. He said on social media X that although there is no exact date, he personally guesses that July 18 may be the key date.

IPO is imminent, market excitement and volatility concerns coexist

Initially, Bloomberg Intelligence analysts gave an expectation that the ETFs may be officially listed later next week or the week of July 15. However, due to uncertainty in the approval process of the U.S. Securities and Exchange Commission (SEC), an exact listing timetable cannot yet be determined. This means that although analysts have given a forecast time frame, the final listing date still needs to wait for the SEC’s approval results.

In addition, industry experts believe that the approval of the spot Ethereum ETF will be a turning point in the market, providing institutional investors with a compliant and convenient way to invest in Ethereum, which is expected to increase market demand and liquidity. Fineqia research analyst Matteo Greco is also optimistic about this trend, believing that it shows the growing interest of traditional financial service providers and investors in digital assets, indicating a positive outlook for the digital asset market.

However, Shubh Varma, co-founder and CEO of Hyblock Capital, cautioned that anticipation for these ETFs could lead to increased market volatility. He pointed out that the rise in the Deribit Bitcoin Volatility Index (DVOL) reflects the market’s expectations of future price fluctuations.

Despite volatility concerns, the market has reacted positively to these developments, with rising Ethereum prices reflecting optimism over the approval of an Ethereum spot ETF.

Eagerly awaited, the prospect of Ethereum ETF listing is full of worries

With the S-1 filing for the spot Ethereum ETF, the move is seen as an important step in the approval process. The SEC has previously approved Form 19b-4, which is also a prerequisite for the ETF to begin trading.

Industry experts generally believe that the approval of a spot Ethereum ETF will be a turning point for the cryptocurrency market. It will provide institutional investors with a standardized and easy-to-operate investment channel, and may also significantly increase the demand and market liquidity of Ethereum.

At the same time, Fineqia analyst Matteo Greco also took an optimistic view, pointing out that the applications for the new Ethereum ETF and Solana ETF reflect the growing interest in digital assets in the traditional financial sector. Greco believes that this trend heralds a positive outlook for the digital asset market in the medium to long term, indicating that the infrastructure of the financial market will continue to strengthen, and capital inflows, liquidity and transparency will also increase.

However, Shubh Varma, co-founder and CEO of Hyblock Capital, raised concerns that these ETF expectations could lead to market volatility. He noted that this has been heralded by a rise in the Deribit Bitcoin Volatility Index (DVOL), an indicator that predicts price movements over the next 30 days based on options data.

Varma explained that with the rise in DVOL and the rapid decline in the price of Ethereum, liquidity in the spot market is decreasing. This shows that many traders and investors are choosing to wait and see and reduces market activity, which in turn leads to wider bid-ask spreads and price instability.

Despite these concerns, the market's reaction to these developments has been positive. As of now, Ethereum (ETH) is trading at $3,068, up more than 5% in the past 24 hours, showing the market’s optimistic expectations for the Ethereum ETF listing.

Conclusion:

The approval progress of the Ethereum spot ETF, despite concerns about volatility, the positive response from investors has stimulated great interest in the market. This reflects the market’s long-term confidence in cryptocurrencies, and Ethereum in particular, as investment assets. With the continuous innovation of financial products and the gradual clarity of the regulatory environment, we are expected to usher in a more stable and standardized cryptocurrency investment environment.

Ultimately, regardless of whether the Ethereum ETF can be listed within the expected time, its impact on the market has already been seen. These positive developments bode well for the cryptocurrency market, which will continue to attract more attention and capital inflows, while also providing new opportunities for investors, thereby driving the entire industry forward.

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