Ethereum Could Surpass $5,000 With Ether ETFs Predicted in July and $3 Billion in Investments

Monday, June 17, 2024, after a drop in value, Ethereum (ETH) is trading at $3,530 down 1% in the last 24 hours. Bloomberg ETF expert Eric Balchunas suggests that spot Ether ETFs could launch as early as July 2, shaking up market expectations.

In the context of ETH’s price swings, analytics platform Coinglass reported that $11 million in long positions were liquidated, contributing to the recent volatility. Additionally, Ethereum’s open interest reached a milestone of $15 billion, an indicator that many options contracts are still outstanding, pointing to a scenario of intense speculation.

The possibility of launching Spot Ether ETFs generated comparisons with the historical rise in Bitcoin prices, which followed the launch of similar products. However, a recent JPMorgan analysis estimates that Ether ETFs could attract between $1 billion and $3 billion in investments, a fraction compared to the $15 billion accumulated by equivalent Bitcoin products.

The highest price of ETH was recorded on November 10, 2021, when the cryptocurrency was traded close to US$4,880. Compared to the current price, Ethereum would need an appreciation of almost 28% to surpass this mark.

In a recent statement on X (formerly Twitter), Balchunas highlighted that the US Securities and Exchange Commission (SEC) is finalizing the approval process for ETH ETFs. He mentioned that the SEC is reviewing the S-1 registration statements of the eight Ether ETF candidates, expected to be released on July 2.

“Hearing Staff sent comments to issuers on the S-1s today, and they are pretty light, nothing major, asking them back in a week. Good chance they will work to declare them effective next week and remove them before the holiday weekend,” Balchunas said.

SEC Chairman Gary Gensler confirmed during a U.S. Senate hearing that S-1 registration statement approvals would occur “throughout this summer,” adding credibility to Balchunas’ predictions.

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