Ethereum ETFs Set to Launch on July 2nd – Bloomberg Analysts

Ibrahim Ajibade
Published: Jun 29, 2024, 14:05 GMT+00:00

Key Points:

  • Ethereum has rebounded 5% to reclaim $3,400 on June 29 after sinking to a 35-day low of $3,240 on Monday.
  • Bloomberg analysts speculate the Ethereum ETFs could launch in the USA on July 2, 2024
Ethereum ETH Price Prediction

In this article:

Ethereum Price Analysis Ahead of ETH ETF Launch

As bear traders tightened their grip on the crypto derivatives markets this week, LONG contract holders suffered over $200 million in liquidations. Pioneer smart contract network Ethereum was not spared during the June 24 bloodbath that saw the global crypto market capitalization shrink by more than $200 billion in the spot markets.

However, positive developments surrounding the impending launch of Ethereum spot ETFs has spurred investors confidence toward the end of the week.

Ethereum Price Held $3,300 as ETH ETFs Launch Nears

ETH price had fiercely defended the $3,350 territory since the ongoing market correction phase began around June 7. But on Monday, that critical support level caved as ETH tumbled to a 35-day low amid intense market volatility.

Ethereum Price Action (ETH/USD), June 2024 | TradingView
Ethereum Price Action (ETH/USD), June 2024 | TradingView

Ethereum price fell toward $3,241 on June 24, its lowest in 35 trading days, dating back to Monday, May 20, when Bloomberg analysts first broke the news of the US Securities and Exchange Commission’s (SEC) impending ETH spot ETF approval verdict

The price dip on Monday brought Ethereum monthly time-frame losses to the 16% mark, as depicted in the red-shaded patch in the chart above.

Bloomberg Analyst, Eric Balchunas Claims ETH ETF Could Launch Next Week

However, after over a month of delays, Bloomberg Senior Analyst Eric Balchunas issued updates on June 25, highlighting positive movements around the impending official launch of the ETH ETFs.

In a series of posts on X (formerly Twitter), Eric Balchunas stated that VanEck’s latest form 8-A filing on June 25 brings Ethereum ETFs a step closer to actualizing the speculated July 2 launch date.

This appears to have triggered a 24-hour time frame price rebound of 5%, as Ethereum’s price rose toward the $3,400 mark by the time of writing on June 29

Meanwhile, amid growing optimism that Ethereum’s yield-bearing mechanism could trigger a major supply crunch as ETFs begin staking their own deposits, Jonathan Solomon, Co-Founder and Co-CEO of ARIA (Algorithmic Rating Investment Analysis), called for caution, citing regulatory hiccups ahead.

“The possibility of investors receiving additional yields from ETH ETFs hinges more on regulatory approvals and frameworks than on asset managers’ willingness.

With the competitive landscape evidenced by multiple applications for both Bitcoin and Ethereum Spot ETFs, it’s conceivable that asset managers might leverage staking yields as a competitive advantage. The primary obstacle, however, remains the unclear regulatory environment present.”

– Jonathan Solomon, Co-Founder and Co-CEO of ARIA

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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