Key Points
- Ethereum ETFs could potentially begin trading in the U.S. as early as 2 July, according to Bloomberg’s Senior Analyst Eric Balchunas.
- Bitcoin seems to be underperforming as the anticipation for the approval of Ethereum ETFs grows.
SEC Chair Gary Gensler recently made comments suggesting that Ethereum [ETH] spot Exchange Traded Funds (ETFs) could be approved this summer. Eric Balchunas, Bloomberg’s Senior Analyst, has now hinted at a possible start date.
Predictions for Ethereum ETFs
Balchunas suggests that Ethereum ETFs could start trading in the U.S. on 2 July. This prediction has sparked optimism within the cryptocurrency community, particularly around Ethereum’s future market opportunities. Balchunas also suggested that the launch might be timed to coincide with the United States’ Independence Day on 4 July.
Bitcoin vs Ethereum ETFs
The approval process for Ethereum ETFs has been significantly shorter than that of Bitcoin [BTC] ETFs. The Winklevoss twins, founders of the Gemini crypto exchange, first applied for a Bitcoin ETF in July 2013. It took nearly a decade of regulatory scrutiny and multiple applications before the SEC approved 11 Bitcoin ETFs in January 2024.
Following the approval of Bitcoin ETFs, Ethereum saw a significant rally, rising by 9.1%, while Bitcoin underperformed. Now, with the anticipated approval of Ethereum ETFs, Ethereum stands out in a market downturn. At the time of writing, Bitcoin and many other cryptocurrencies were experiencing a decline, while Ethereum was in the green with a modest increase of just over 1%.
A recent report by Farside Investors showed that spot Bitcoin ETFs experienced two consecutive days of outflows on 13 and 14 June, totaling $416.1 million.
Future Uncertainties
Despite the changing dynamics in the crypto market, it’s too early to definitively say whether investors are moving from Bitcoin to Ethereum. Analysis of Santiment by AMBCrypto showed that the social dominance metrics for both Ethereum and Bitcoin were increasing. However, the Relative Strength Index (RSI) remained flat, indicating no clear signs of either bullish or bearish momentum.
