The asset management company holds an optimistic attitude towards the possible approval of the first US ETF that directly invests in Ethereum by the US Securities and Exchange Commission in mid-July.
The US Securities and Exchange Commission has requested ETF applicants to submit the latest documents and revised S-1 by July 8 and may conduct additional rounds of applications.
Bloomberg reported, citing informed sources, that after the application due on July 8, there may be a new round of applications.
Galaxy Digital Asset Management Director Steve Kurz told Bloomberg that the Ethereum ETF may be approved in the coming weeks.
“This is a whitewash, the US Securities and Exchange Commission is involved. We have been doing this for months. We have done this for the Bitcoin ETF, the product is basically similar – we know the pipeline, we know the process.”
Major asset management companies such as BlackRock, Fidelity, Ark 21Shares, and Invesco have not yet submitted applications, but many issuers have not disclosed their fund expenses, which is a necessary step before trading begins.
It is currently unclear whether the Ethereum ETF will generate demand similar to the spot Bitcoin ETF, which has accumulated $52 billion in assets since its launch in January.
Analysts estimate that the flow of Ethereum ETF may be about 10% to 15% of the flow of Bitcoin ETF, and the price of ETH may drop by 30% after its launch.
However, cryptocurrency research company K33 research expects Ethereum to outperform Bitcoin in July.
K33 senior analyst Vetle Lunde wrote in a report on July 2, “As the summer progresses and the traffic accumulates, the ETF is a solid catalyst for ETH’s relative strength, and I firmly believe that the current ETH/BTC price is a bargain for patient traders.”.
Bitcoin faces potential selling pressure as nearly $9 billion worth of Bitcoin is about to be distributed, which is related to the now-defunct Mt.Gox exchange.
Ethereum price decline
The Ethereum price did not show any positive momentum today. In Asian trading on Wednesday, the asset fell 3% to an intraday low of $3342.
Earlier this week, ETH broke through the 10-day high point of $3500, but due to the failure of the cryptocurrency market to break through resistance, it fell again, following its big brother.
At present, Ethereum is down 17% from its 2024 peak of just over $4000, and 31% from its all-time high in November 2021.
