- SEC preparing Ethereum ETFs to launch next week Tuesday after asking issuers to return final S-1s, says Bloomberg analyst.
- Ethereum investment products raked in $72 million in inflows, its highest level since March.
- Ethereum could set a new yearly high in the coming weeks after ETH ETF approval.
Ethereum is up nearly 7% on Monday following updates from Bloomberg analysts that the Securities & Exchange Commission (SEC) would potentially greenlight spot ETH ETFs to launch next week Tuesday. The increased inflows across global Ethereum investment products also align with the new development, as traditional investors seem to be preparing for a potential rally ahead of the launch.
Daily digest market movers: Why ETH ETFs could perform well
In an X post on Monday, Bloomberg analyst Eric Balchunas said that the SEC plans to launch Ethereum ETFs on July 23 (next Tuesday) after responding to issuers today. Balchunas highlighted that the SEC asked issuers to submit their final S-1s with fees included on Wednesday before the launch can take place.
This may be highly bullish for the entire crypto market, considering the Bitcoin conference will be taking place next week, and US presidential candidate Donald Trump is listed among the speakers.
Update: Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
The SEC approved issuers’ ETH ETF 19b-4 filings last week but needs to greenlight their S-1 registration statements before the products can begin trading. Issuers submitted their updated S-1s with the SEC last week after the agency made light comments on them.
Traditional investors are turning bullish on Ethereum as the ETH ETF launch draws closer. This is evidenced in the recent weekly performance of global Ethereum ETFs, which witnessed inflows of about $72 million, its highest level since the market rally in March, according to data from CoinShares.
While some analysts have predicted that ETH ETFs may underperform, the recent growth across international Ethereum ETFs suggests otherwise. Additionally, most bullish investors speculate that ETH’s low circulating supply due to locked ETH in staking protocols would allow the ETF inflows to spark a significant surge in ETH’s price.
Ethereum CME open interest (OI) has also been growing faster than other derivatives exchanges, indicating a growing appetite among US investors for the largest altcoin.
ETH technical analysis: Ethereum could see a new yearly high
Ethereum is trading around $3,400 on Monday, up nearly 7% on the day. ETH’s rise follows a general recovery across the crypto market after crypto investors reacted positively to presidential candidate Donald Trump’s escape from gunshots during a rally in Pennsylvania.
As a result, over $23.31 million worth of ETH short positions were liquidated whereas long liquidations significantly reduced to $3.86 million in the past 24 hours.
ETH’s Long/Short Ratio, at 1.04, also shows the shift in market sentiment. The Long/Short Ratio estimates the total number of longs versus shorts in the market. A ratio above 1 suggests bulls are in control, and vice versa if it is below 1.
ETH/USDT 4-hour chart
The recent change in market sentiment, combined with the potential approval of spot ETH ETFs on Tuesday, could propel ETH above the $3,974 to $4,093 resistance to set a new yearly high. On the downside, the $3,200 price level could serve as key support.
In the long term, trader @CryptoYoddha predicted that Ethereum could reach $13,654 in 2025 as its consolidation over the past few weeks suggests potential for higher growth.
ETH All-time chart
Ethereum development FAQs
After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.
Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.